Environment, Social and Governance (ESG) refers to the three central aspects to be considered in measuring the sustainability and ethical impact of an investment in an entity. At Laurium Capital we consider each of these factors as part of our integrated investment approach. The three ESG factors help to better determine the intrinsic value of a company and assist in forecasting the future financial performance. Whilst both environment and social factors are important to us, our main focus is on governance.
To survive and grow in an increasingly competitive and accountable business environment, organizations are required to report not only on their financial performance, but also their non-financial performance. We incorporate these ESG factors into our investment decision-making process in a way that is fully consistent with our long-term investment horizon. We believe that companies cannot achieve sustainable economic success while neglecting their social and environmental responsibilities. High standards of corporate responsibility generally make good business sense and have the potential to protect and enhance investment returns.
To further enhance our commitment and continued focus on ESG factors, Laurium Capital have become a signatory to the United Nations Principles for Responsible Investing (UNPRI).