At Hosking Partners, we take an integrated approach to the incorporation of ESG considerations into our investment process. Roman Cassini, Head of ESG, works closely with the investment team to ensure awareness and analysis of all topics which fall under the broader heading of sustainability. This helps ensure that the relevant impact of these issues, both global and local, is taken into account in individual security decisions. We believe this is a better way of addressing the challenge compared with a segregated treatment of ESG issues, and might be described as the opposite of a marketing-led approach. This quarter’s report demonstrates that deep integration. In our lead article Roman discusses how the energy transition is shaping macroeconomic developments in different regions of the world, while in our ‘A focus on…’ section, Chris Beaven considers the role of in-person engagement in assessing investee company management quality.

On the broader engagement front, in early September we were proud to receive formal accreditation as a signatory to the updated UK Stewardship Code. Our signatory document, which details our commitment to the Code’s 12 principles, can be found on our website. Furthermore, as part of ensuring an inclusive and equitable approach to everything we do, we have partnered with the charity GAIN (Girls Are INvestors), who place recent graduates into volunteer firms for an internship period. We will welcome our first GAIN intern next Summer.