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Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.
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Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.
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Leader in systematic equities across market cap weighted indices, smart beta and active quantitative strategies
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At Stewart Investors, we believe in putting people first. Our investment world-view is of a series of partnerships – with each other, with our clients, with the companies we invest in, the people who buy their goods and services, and with the wider society in which we all live and work.
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- Our funds
- Australian equities
- Small & Mid Caps
- Australian Small Companies - Responsible Investment
Approach to Responsible Investment
Stewardship and ESG integration
Sustainability is one of the six key criteria used in our evaluation of securities, however it is not a negative screen. Our assessment of a company includes criteria related to practice, commitment and disclosure of ESG issues by management, and performance relative to peers. For example, environmental assessment considers issues of climate change, company efficiency and practices relative to industry and applicable standards; social assessment incorporates measures of employee and stakeholder policies and human rights; and governance considerations include board composition, remuneration structures and corporate disclosure.
Our extensive proprietary analysis is supplemented by company disclosures, the media and external research.
Assessment and monitoring
We monitor each company’s progress on managing ESG issues as part of our ongoing company research program.
Integration
Where ESG factors are determined to have a material impact on profitability, they are quantified and can influence other factors, most directly in the valuation and financials of the company.
Engagement
We have active, direct dialogue with many company board members and senior management on material ESG issues, which we identify through our consideration of ESG risks. We try to gain comfort that the company’s senior management and board are aware of, and accountable for, the management of material issues. Where relevant, we encourage companies in which we invest to improve their ESG disclosure.

Case studies
We believe that a strong commitment to stewardship is an essential component of a strong approach to responsible investment (RI), and that embedding RI into the core of our investment activities is in the best long-term interests of our clients. For more than a decade we have systematically and progressively improved our practices and processes across our investment capabilities globally.
Climate Change Statement
The section below provides addition, team specific, information on climate change. Further information on our approach to climate change can be found in our climate change statement.
Key climate-related risks in the team’s portfolio
The key climate-related risks in the team’s portfolios include physical, transitional, reputational and regulatory risks.
Physical risks are expected to arise from longer-term shifts in climate patterns which may have financial implications for companies the team invests in. For example, an increase in adverse weather events, such as flooding or extreme heat, may result in operational downtime, supply disruption or increased capex.
Transitional risks to a lower-carbon economy may entail companies dealing with material changes to how they are able to develop, produce and sell products and services. This may lead to potential earnings risk, stranded assets, restricted markets, or carbon border tariffs.
Reputational risks arise from expectations and perceptions of a company’s contribution to the shift towards a lower-carbon economy. Those companies tied to fossil fuels, higher emissions and failure to transition may be at increased risk of losing their social licence to operate.
Regulatory risks will continue to evolve, with new legislation likely to encourage or mandate companies to reduce carbon emissions. The move towards net zero will not come without cost for small and mid cap companies, especially for higher emitters which are likely to have increased administrative and operational expenses.
The team expects these risks to emerge over the medium- (3–7 years) to long-term (7+ years) investment horizon.
How these risks are identified
The team’s comprehensive research process assesses every potential investment on a range of six factors, one of which is sustainability. Climate change and carbon risk are considered as part of the sustainability rating.
In-depth, ongoing company engagement is the primary tool the team uses to identify climate related risks in the portfolios. This is augmented by third party research and the in-house Responsible Investment function’s expertise. The team works closely with companies to understand and manage the risks associated with climate change and the transition to a low carbon economy.
The team does not use quantitative carbon-related metrics in valuations or risk models. Rather, the team takes a qualitative, case-by-case approach with regards to understanding and managing climate related risks to companies and the portfolio.
Addressing risk
Climate change risk is evaluated by the team when considering the sustainability of a company’s activities. Although climate change may not be an important short-term issue for some stocks, it is likely to be an important long-term issue for stocks with sensitive exposure to trends in climate change. For example, industries related to fossil fuel production, such as the coal, oil and gas industries, will likely face multiple challenges during the transition to a low carbon economy.
The team engages heavily with senior management and boards to identify potential or existing risks. The team expects senior company management to understand ESG risks and manage them successfully. When this isn’t the case, the team works closely with management to resolve any ESG risks to the satisfaction of the investment team.
Where the team cannot gain confidence in management’s understanding and management of ESG risks, this will be reflected in the team’s proxy voting decisions and will ultimately feed through to stock positioning in the portfolio via the team’s investment process.
The targets and objectives that have been set
The team has committed to short, medium and long term targets for selected companies in the portfolio, based on analysis performed in line with the Institutional Investors Group on Climate Change (IIGCC) Net Zero Investment Framework Implementation Guide. The targets are as follows:
Short term: The selected companies are to develop a decarbonisation strategy and set a net zero target accompanied by targets that align with net zero emissions by 2050 or sooner.
Medium term: The selected companies are to have a decarbonisation strategy in place with emission reductions achieved in line with targets set by company.
Long term: The selected companies are to achieve net zero by 2050.
More specific targets have not been set at this time, as mandating targets of this type is inconsistent with the team’s broader investment philosophy and process. Rather, the team collaborates with the selected companies on the issue of climate change, related risks, and the transition towards net zero. Pleasingly, a rapidly increasing number of companies in the small and mid cap companies’ space are positioning themselves to provide the solutions needed to reduce emissions, manage climate-related risks and successfully transition to a low carbon economy.
Carbon footprint
For more information, see our Carbon Footprint explainer
The dashboard is best viewed in full screen. Click on the icon on the dashboard bottom right
Proxy voting
Proxy voting history by type of resolution
The table below contains the proxy voting history for the team by issue type. The chart provides the same information for FY2019.
Proxy voting information is as at 31/12/2019
Source: First Sentier Investors / CGI Glass Lewis
Voting Independence
The chart below shows the number of times the team has voted against management recommendations, proxy advisors' recommendations, or against both. The purpose of this table is to show the independent judgement which is applied by the team when making voting decisions.
More information
View First Sentier Investors proxy voting record and statistics
Responsible Investment
For over a decade, responsible investment has been integrated into every investment process.
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On 16 September 2019, Colonial First State Global Asset Management (CFSGAM) rebranded to First Sentier Investors. Any content produced prior to this date that references CFSGAM or Colonial First State Asset Management (Australia) Limited should be read as references to First Sentier Investors or First Sentier Investors (Australia) IM Ltd.
Material on this website is intended to provide general information only. Such material does not into account your objectives, financial situation or needs. You should consider these matters before acting on the information and consider the relevant Product Disclosure Statement for any product named on this website before making an investment decision.
Total returns for the Funds have been calculated using exit prices after taking into account all ongoing fees and assuming reinvestment of distributions. No allowance has been made for taxation. Past performance is no indication of future performance.
The target market determination (TMD) for any fund mentioned on this website is available HERE and should be considered by clients or prospective investors prior to making a decision to invest to ensure that they form part of the relevant target market.
Any opinions expressed in videos are the opinions of the individual participant and are subject to change without notice. Such opinions are not a recommendation to hold, purchase or sell a particular financial product and may not include all of the information required to make such a decision. Before making any such decision you should consult a financial adviser.
Copyright © First Sentier Investors (Australia) Services Pty Ltd 2022, (part of First Sentier Investors, a global asset management business. First Sentier Investors is ultimately owned by Mitsubishi UFJ Financial Group, Inc MUFG.)
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