Sustainable Business Practice

It used to be imperative that investment decisions were driven purely based on fundamental analysis. Today, global challenges are brought about by a growing global population that is consuming more goods and services. Action is required by all, not only by governments, to avoid the worst of the impact this has on the planet. Our investment approach is conscious of this need. We call this sustainable business practice.
We aim to optimise investment returns while considering exposure to environmental, social and governance (ESG) issues of the companies we invest in.

We believe that:

  • companies acting responsibly do not have to fear for reduced shareholder return;
  • companies offering solutions to challenges caused by a growing global population have significant growth opportunities;
  • the risk of reputational damage is reduced when a company commits itself to high ESG standards.

Because environmental, social and governance issues can have substantial investment implications, we believe it is our fiduciary duty to fully integrate ESG research into the investment process. Our analysts consider the relevance of ESG issues that may have an impact on each of our (potential) investments. These issues are discussed as part of our daily meetings. As analysts, we see it as part of our job to engage with companies, encouraging them to improve ESG performance. We want the companies we invest in to be aware and responsive to the challenges we all face.

How do we apply our sustainable philosophy:

  • sustainability analysis is integrated in our global small-cap selection process.
  • IBS, the parent company of SilverCross, has signed up to the UN PRI and is committed to the UN Global Compact.

Engagement with companies

Our analysts engage in active dialogues with companies about their operations, including ESG risks. When we believe these risks are apparent and cause any of our beliefs to be under threat, we will encourage management to improve its performance. If our engagement proves unsuccessful, we will sell our investment.

Examples of conduct that would lead to engagement

  • Products that risk people’s health
  • Pollution
  • Human rights issues

Companies excluded from our investment universe

We will not invest in a company if its primary activity is linked to the following practices:

  • Corruption
  • Tobacco
  • Child or forced labour, discrimination
  • Environmentally dangerous materials / harmful pollution
  • Breach of conventions regarding ethically unacceptable weapons

Resources dedicated to ESG research

As ESG research is integrated into the research process, all analysts are working on ESG issues. In addition, we work with an external ESG research provider to support our research activity.

Proxy voting policy

SilverCross uses KAS BANK to enable us to vote on shareholder meetings whenever we feel our vote helps influence decisions related to the environment, its social policies or governance.

For further information about the Sustainable investing policy at SilverCross Investment Management, please contact

Proxy Voting overview Q4 2018
Proxy Voting overview Q1 2019

silvercrossAdmnSustainable Business Practice