Guidelines

The governing body of the vehicle, together with the investment manager, should ensure that there are systems and procedures to strengthen the skills, capacity and competence of employees and the governing body with regard to ESG issues.

The investment manager, together with the governing body of the vehicle, has a responsibility to assess whether the people involved in the vehicle are well-equipped and possess sufficient knowledge, skills, and experience to consider and address major ESG risks and opportunities while performing their duties.

Key members of the operational and management team, including the governing body of the vehicle, should have capacity and devote adequate time to effectively operate and oversee the ESG strategy and objectives of the vehicle. This consideration is especially important for team members that are instrumental to the success and execution of the ESG strategy of the vehicle.

The investment manager should ensure that all parties involved in the operations and management of the vehicle are adequately trained and have access to appropriate educational programmes in relation to ESG objectives of the vehicle.

It is important that all parties involved in the operations and management of the vehicle have an understanding of its strategy, objectives, and targets related to ESG considerations. This could be facilitated through training and awareness programs.

The investment manager should allocate sufficient resources for education and training. Training should cover the major considerations around ESG, including areas such as building an awareness of the impact ESG factors may have on the performance of a vehicle, its business model, and the risk management approach. Also, it should assist in identifying the primary impact the vehicle’s strategy has on the environment, society, and other stakeholders, together with its unintended consequences.
 

The investment manager should consider principles of Diversity, Equity and Inclusion (DEI) in shaping the structure and culture of its organisation, and the composition of its governing body.

The investment manager should ensure that its human resources processes and programs are impartial, fair, and provide equal possible outcomes for every individual based on merit, irrespective of identity and background.

The composition of the governing body should be based on the required skills and expertise and appropriate DEI principles.

The culture and management style of an organisation should promote effective teamwork with individuals feeling included and comfortable in contributing to problem-solving and decision-making.