In emerging economies, a responsible approach to investment is often seen as an added burden. We see it differently: environmental, social and governance factors directly affect a business's resilience and its ability to create value over the long term.
Three dimensions of value
Environmental responsibility reduces operational and regulatory risk. Social responsibility strengthens relationships with employees and communities. Sound corporate governance raises investor confidence and lowers the cost of capital. Together they build a more resilient business.
- Environment: efficient use of resources and lower risk
- Social responsibility: people, safety and communities
- Governance: transparency, accountability and discipline
The long-term view
Responsible practices do not deliver an instant effect, but they determine which companies will still be strong in ten or twenty years. For an investor with a long horizon this is not a cost, but an investment in resilience.
Sustainability is not a constraint — it is a condition of long-term value.
