Our 20 years of experience has taught us that consumer companies which effectively address ESG issues will be the long-term winners in emerging markets. These companies are better able to drive innovation, lower operating costs, improve market access, enhance their reputation and attract the best talent.

Responsibility

ESG at Arisaig

1996

Arisaig Partners founded. Strong focus on management quality and ‘EM portfolios that allow you to sleep at night’

1998

First engagement letter sent to company management

2003

Integration of CG checklist into investment process

2009

Began integrating E and S factors into our investment process. We also commissioned external research on water stress in Asia

2010

Arisaig is the first EM manager to become a PRI signatory

2012

Convened ESG Forum on the retail space in South Africa

2014

Published our first ESG Review and shared it widely

2015

First PRI Assessment Report completed (A/A*/A*)

2017

Winner of Responsible Investor award

2020

Launch of our first impact fund, the Arisaig Next Generation Fund

2021

Launch of Next-Gen ESG Investment Program

Responsibility

ESG Framework

Exclusions

Due to our sector focus, we have never invested in mining, fossil fuels or weapons. We also exclude gambling, pornography and tobacco from our consumer portfolios.

Back to contents list

Governance

68-point checklist across:

  1. Shareholder rights
  2. Transparency and related-party transactions
  3. Audit and accounting
  4. Board oversight
  5. Executive oversight

Deep-dive into alignment of interests with owners:

  • Family-owned
  • Founder-owned
  • State-owned/backed
  • Free-floated
Back to contents list

Sustainability

Risk management framework

Identify and analyse the 5-10 most material sustainability risks affecting each sub-sector/company

For example in the Food and Beverage sector:

  1. Product safety
  2. Supply chain footprint
  3. Energy management
  4. Water management
  5. Health and nutrition
  6. Packaging lifecycle management
Back to contents list

Expert partners

ENGAGEMENT

Helping Good Businesses Become Better

We have built strong interpersonal relationships with our investee companies’ management teams over the years. This often allows us to – both in-person and via Engagement Letters – raise concerns, explain a decision in a proxy vote, or provide constructive advice about business sustainability issues. As a large minority shareholder, we are often contacted for our opinion in advance of a resolution being tabled. Even through disagreements we aim for constructive dialogue. If necessary, we engage with other minority shareholders and, if we feel there is insufficient appreciation of material risks, despite our efforts, we will very infrequently divest our position. This patient, constructive engagement strategy is suitable only for semi-permanent capital such as the Arisaig Funds.

  • In-person and written interaction with management
  • Voting on resolutions
  • Meeting with experts and advisors

Education

Nurturing the Next Gen ESG Investors with a Webtoon

Through cooperation with CFA Institute and Generation Z Investment Club (“Z Club”), we launched Next-Gen ESG Investing Program (the “ESG Investing Program”). Started in 2018, Z Club is an intercollegiate organization where more than 50 students from Singapore, China and other countries manage real money portfolios to learn how to invest. For the ESG Investing Program, Arisaig led the design of a ESG-focused curriculum that consists of real investment case studies. As part of this education initiative, we also created an ESG case study webtoon about Vitasoy, which we have been invested for more than 20 years. This is the first webtoon of an ESG investment case study in history and we believe this innovative format will attract our digital-native generation.