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At Avaron we believe that environmental, social and corporate governance (ESG) issues and stewardship activities are material to the risk-adjusted investment returns over the long-term. This is why we have implemented ESG analysis in the investment decision-making process across all of our products by applying a Responsible Investment (RI) Policy. The Policy outlines our approach in managing the ESG risks and opportunities to maximize the performance of our portfolios without taking undue risk.
We adhere to the UN Principles for Responsible Investment (PRI) that are designed to encourage the integration and analysis of ESG characteristics into investment practice.
We promote responsible investment through the integration of ESG criteria into our investment process. At Avaron we do not invest in companies that exceed acceptable levels of involvement in activities considered to be controversial such as weapons, alcohol, tobacco, gambling, adult content, coal and activities in oppressive regimes. Also we scrutinize whether the companies we invest in comply with global ESG best practice. We keep direct dialogue with companies on ESG issues and push for constant improvement. Exercise of voting rights is central to our practice of responsible investment as it enables to maintain shareholder oversight of the company policies and management.
Avaron reports on the responsible investment activities on annual basis via the UNPRI Reporting Framework. Transparency Reports, publicly available on the PRI website, show signatory responses to all of the mandatory indicators as well as responses to voluntary indicators that the signatory has agreed to make public. Assessment Reports demonstrate how a signatory has progressed in its implementation of the Principles year-on-year and enable to benchmark against its peers.