esg
When considering potential new investments we look at ESG factors as well. The evaluation of the non-financial characteristics of a potential investment is fundamental to our investment approach and so the inclusion of environmental, social and governance aspects of a potential investment forms a natural part of our due diligence and in support of this, Quantum will be a signatory to UNPRI.
We score an entity across the three standards. Some examples of our areas of questioning and assessment are below.
Environmental
- Emissions impact assessment
- Natural resource impacts assessment
- Waste impact assessment / product recycling potential
- Understanding of the materials involved in the manufacture (particularly level of plastics in componentry)
- Environmental considerations in manufacturing assessment
Social
- Workplace trends –staff turnover, staff satisfaction scores
- Whistle-blower policy
- Appropriateness of remuneration arrangements
- Workplace health and safety is appropriately assessed and managed on a regular basis
- Social benefits potential (eg level of healthcare improvement, capacity to save lives, affordability, etc.)
Governance
- Performance-based management remuneration
- Suitability and independence of the proposed governance structure
- Taxation structure ensuring that the structures do not promote tax avoidance
- Security of the technology –patent protection, cyber security structures, etc
- Appropriateness of key relationships between government, research institutes, management and shareholders