In 2007, Kagiso Asset Management became a signatory to the United Nation’s finance initiative known as Principles for Responsible Investment (PRI).

The PRI aim to help investors integrate consideration of environmental, social and governance (ESG) issues into investment decision making and ownership practices, and thereby to improve long-term returns to beneficiaries.

At Kagiso Asset Management, we believe we have a duty to act in the best long-term interests of our clients. In this fiduciary role, we believe that ESG issues can affect the performance of investment portfolios to varying degrees across companies, sectors, regions, asset classes and through time. We also recognise that applying these principles may better align investors with broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to identifying ways to incorporate PRI as follows:

• we will incorporate social, environment and governance issues into investment analysis and the investment decision making process
• we will incorporate ESG issues into ownership policies and practices
• we will look for appropriate disclosure on ESG issues by companies we invest in
• we will promote acceptance and implementation of the PRI in the industry
• we will work with others in industry to enhance effectiveness in implementation of PRI
• we will report on progress towards implementing the principles

The PRI were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.