What is Socially Responsible Investment (ESG)?
The environmental factor (E)
To make decisions based on how the activities of companies affect the environment.
The social factor (S)
To consider the impact that the activities carried out by the company have on the community, for example, in terms of diversity, human rights or health care.
The government factor (G)
That studies the impact of the shareholders themselves and the administration and is based on issues such as the structure of the boards of directors, the rights of the shareholders or transparency, among others.
OUR ESG APPROACH FROM DIFFERENT POINTS
ESG approach in our investment process (Investments)
Historically, as long-term investors, at Cobas AM we have invested in companies that serve consumers in the best possible way. As part of that process, we have always been involved with many of the companies in which we invest. That is why, apart from our conversations on corporate governance (G), we include, where relevant, social (S) and environmental (E) concerns in our conversations with management teams.
To make that approach more explicit than in the past, in 2019 we engaged a leading third-party information provider to address specific ESG concerns at the individual company level. ESG issues create both opportunities and risks and are therefore important factors to consider when evaluating investment opportunities.
We believe in the importance of these aspects for the long-term economic development of companies, and they are relevant throughout our research process. Despite this, our ESG approach to portfolio building is one of integration and not exclusion. In other words, we incorporate risks as one more variable when selecting our investments, however, we do not take into consideration the main adverse incidents on sustainability factors since we do not have a due diligence policy in relation to them.
While our ESG approach will certainly evolve, so far it provides us with the opportunity to broaden and deepen our understanding of companies and sectors and makes our long-term commitment to the management teams of the companies in which we invest more relevant.
One step further as an investment team, has been the signing in January 2021 of the Principles for Responsible Investment (PRI), an internationally recognized initiative promoted by the United Nations to promote responsible investment practices. In this way, the manager becomes part of a community of more than 3,000 voluntary signatories worldwide who collaboratively contribute to a more sustainable global financial system.
ESG Approach as a Collective Investment Institution (Management Company, SGIIC)
In 2019, Cobas AM was the first Spanish investment fund manager to join the B Corp community. It is a movement that recognizes the best companies for the world and their good practices throughout the value chain. They are a model of companies that meet the highest standards of social and environmental performance, public transparency and corporate responsibility to balance profit with purpose. Therefore, the B Corp community works to reduce inequality and poverty, care for the environment, strengthen communities and create high-quality jobs with dignity and purpose. At Cobas AM we use our profits and growth to achieve a greater goal: to generate a positive impact for our employees, the communities and the environment.
One of the most important initiatives that we carry out in terms of social impact is that 15% of the income of Cobas AM and Cobas SGFP are allocated to impact investment (GSI), education (Value School) and venture philanthropy. (Open Value Foundation).
In addition, we promote actions aligned with these standards. Between them:
– We have implemented a flexible schedule model to facilitate family conciliation.
– We are a company committed to the environment. For this reason, we recycle our waste paper, electronic devices, batteries, organic waste, plastics and glass.
– We apply a remuneration policy with ESG measurement and gender equality.
ESG approach as a business group Santa Comba
Santa Comba (the family holding company that owns Cobas AM) has a significant bias towards the values and philosophy of impact investing, PRI and ODS, with generosity being one of our basic pillars. Proof of this are the multiple initiatives that we have adopted within the different companies of the group with these seals and international commitments previously mentioned that ratify it. All our projects share a common and transversal axis: the philosophy of investment in value. Santa Comba vertebrates, coordinates and unifies them, multiplying the value of each one of them:
– Cobas Asset Management.
– Value School.
– Global Social Impact Investments.
– Open Value Foundation.
For more information about the different projects, you can access www.santacombagestion.com
