The incorporation of ESG issues into Solaris’ investment decision making process is an integral part of our business. Solaris believes that the consideration of ESG factors can help to protect and enhance our clients’ investments over the longer term. As stewards of our clients’ capital, Solaris exercises ownership rights and responsibilities including monitoring company performance, engaging with companies and voting proxies. As part of our stewardship activities, the consideration of ESG factors has a prominent role. The ESG field is a broad and ever-evolving space that continues to challenge the companies in which we invest and our assessment of those companies. Solaris aims to ensure that we are at the forefront of material ESG factor assessment to ensure long-term capital enhancement and protection of our clients’ portfolios. Solaris considers the sustainability outcomes of the companies we invest in and their ability to transition through changing market conditions and societal norms.
ESG factors are considered at two stages within the Solaris Investment process – the initial risk screening stage and as one of the six Qualitative factors used to value companies. Solaris aims to integrate material ESG factors into the valuation of each company included in, or considered for inclusion in, the portfolios we manage. Each company is assessed on a case by case basis with premiums/discounts for factors identified applied through the analyst’s valuation process.