ESG matters

Environmental, Social and Governance (ESG) matters are of increasing importance to investors, companies and society. As a responsible investor, Obviam is committed to invest according to international best practice ESG standards in order to contribute to sustainable development in our target markets.

In an investment context, it is desirable for Obviam to account for material ESG issues that can affect investment value. The failure, for example, to identify poor pollution management practices at a Small and Medium Enterprise (SME) in the chemical sector, to identify poor safety standards at a company involved in labour-intensive manufacturing, or to identify weak board and management structures in a family owned SME, can result in significant liabilities. On the opportunity side, identifying companies that are developing new products and services, driving cost savings through innovation and efficiency, and increasing productivity as a result of a proactive approach to ESG management, can result in significant value creation.
 
Moreover, as a responsible investor in emerging and frontier markets with impact objectives, it is important for Obviam to ensure that our investments comply with all applicable ESG laws and regulations, and beyond that, require that investments meet international best practice ESG standards.

Obviam has a comprehensive approach to responsible investment, this includes a Responsible Investment Policy which provides our clients, peers in the investment community, entities in which we invest, and broader stakeholders with an understanding of the rationale, objectives and scope of Obviam’s approach to responsible investment. Accompanying the concept document, Obviam’s Responsible Investment Policy contains Obviam’s policy statement on responsible investment, specifically our commitment to integrate environmental, social and governance (ESG) matters in investment practices. Supporting the policy statement, the Responsible Investment policy document includes Obviam’s Exclusion List,  Obviam’s ESG requirements for funds and fund managers, financial institutions, and investee companies, and  a summary description of Obviam’s ESG implementation.