Environment, Social and Governance (ESG)

ESG factors are a core part of Baker Steel’s investment process, to support sustainability in the mining sector, manage risk and drive Fund performance

Baker Steel believes that promoting ESG factors is important not only to support sustainable and ethical investment, but because ESG considerations are key for creating and maintaining shareholder value through risk avoidance and instilling progressive standards of best practice. It is our view that companies that produce goods in an ethical and sustainable manner and maintain a higher standard of corporate governance and transparency will likely financially outperform over the long-term.

Baker Steel’s ESG Investment Policy draws from international best practice and builds upon the principles and processes outlined in the United Nations Principles for Responsible Investment (“PRI”), of which Baker Steel is a signatory. Furthermore, our Luxembourg domiciled UCITS funds, BAKERSTEEL Precious Metals Fund and BAKERSTEEL Electrum Fund, promote ESG characteristics in accordance with Article 8 of the EU Sustainable Finance Disclosure Regulation (“SFDR”).

ESG considerations are considered as part of investment due diligence in terms of enhanced risk management and, as such, are embedded into Baker Steel’s investment decisions including being directly addressed with company management during meetings and on-site visits. Evaluating ESG factors in the mining sector, such as tailings dam assessment, usually require the specialist and technical knowledge of an expert team.

As an active investment manager we will use our voting rights to influence investee company direction in a sustainable way where deemed appropriate. We believe that social and environmental responsibility, along with good governance, are an integral element of running a successful mining company.

For more information on ESG and sustainability in the investment process, please contact our team. You can also view the relevant ESG documents at a firm-wide level here.