At Causeway Capital, we want to ensure our investments have a positive impact for our investors, society and the wider world – while also delivering financial returns. Environmental, social and governance (ESG) considerations have been an integral and growing part of our decision-making process since we launched in 2016. We recognise we have a social responsibility given our active ownership of several sizeable businesses across Ireland and the UK.
Since 2018, we have maintained a Responsible Investment Policy which governs how we incorporate ESG criteria across all levels of our investment analysis and portfolio management (see here). While ESG incorporates many topics and themes, the environmental aspect and specifically climate change is a hugely important global issue, and we wish to ensure we are doing our part for society. Climate change is the defining issue of our time and we are at a pivotal moment. As investors in SMEs, we can help play our part in the transition to a low-carbon economy through our investment decisions and ongoing assessment of climate change impacts across the portfolio.
We have therefore published our Environmental Approach and Policy, which sits alongside our broader Responsible Investment Policy. That said, we do recognise that climate change (as a key ESG component) is highly complex and the underlying assumptions, methodologies and data are all relatively new and evolving. This policy represents our first steps in developing and furthering our understanding and approach to climate-related risks and opportunities over time.
In addition we are pleased to say our General Partner (Causeway CGP Limited) is now carbon neutral. We have calculated the carbon emissions generated from our GP business activities including work locations and business travel in 2019 and 2020. Carbon emissions have been calculated using publicly available carbon calculators and emissions data provided by the GP’s energy provider.
Causeway Capital has offset all our GP carbon emissions generated from business activities in 2020 by supporting Make It Wild through the purchase of carbon offset credits. Make It Wild is a nature conservation project encouraging greater knowledge, understanding and enjoyment of the natural world.