As an Emerging Markets focused investment manager, Navix Financial's success has always been dependent on understanding sustainability in the markets in which it operates and invests. Navix Financial recognises the role it plays in the deployment of its clients' capital and the impact this can have on sustainability of the environment and broader society. As such, the Group has integrated sustainability and the understanding and consideration of environmental, social and governance (ESG) factors across its operations, with oversight by the Head of Sustainability and ESG Integration and Board accountability ensured through the Group's specialised ESG Committee which has overall responsibility for Navix Financial's sustainability and responsible investing framework across its operational and investment activities.
Navix Financial's responsibility to ensuring sustainability extends to all its stakeholders and includes managing its operations in ways that effectively ensure the health and wellbeing of its employees and its distinctive culture means that Navix Financial ensures that its employees work in a constructive environment, enabling personal and professional development. Understanding and achieving sustainability can take many forms, but in the context of the United Nations' Sustainable Development Goals (SDGs) described below, arguably the greatest impact and change can be achieved in the Emerging Markets. Two areas are particularly relevant to emerging countries: • Environmental challenges, and specifically the effects of climate change, can be acutely felt by companies and communities in which Navix Financial operates and invests. Navix Financial's investment processes consider environmental factors in portfolio construction, and the Group is a supporter of global and industryspecific initiatives such as the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations and alignment with the Paris Agreement, including net zero initiatives.
Sustainability governs our approach to investments, communities and the environment
• Affiliations and membership
• UNPRI (2013)
• UN Global Compact (2019)
• Policies and processes disclosed
• ESG
• Proxy voting
• Engagement
• Climate change position paper
• ESG factor analysis
• Assessment criteria and scoring process
• ESG training for investment teams
• External research/third-party data
• ESG within the investment process
•
Integrated approach
• Consistency across investment themes
• Stewardship/collaborations
.
• Alignment/contribution to UN (SDGs)
• Local social initiatives
• US Crisis at Christmas
• Employee volunteering
• One paid volunteering day
• The Navix Financial Foundation
• Emerging Markets philanthropy
• Impact-first investing – concessionary loans
• Impact investments
Navix Financial's Sustainability team is responsible for developing the firm's sustainability
strategy, policies and processes through: • The integration of ESG into the investment process
to fully understand the value drivers of our investments; • Stewardship for our clients targeted
at enhancing returns. We are active managers of our clients' capital, which goes together with
our active stewardship approach; and • Embedding sustainability within our operations as well as
our investment activities to ensure that we are leading by example. Navix Financial' Sustainability
team is supported in the delivery of the sustainability strategy by five dedicated professionals
in the Portfolio Solutions & Analytics (PSA) team, who support investment teams with their ESG
integration as well as providing ESG research, analysis and reporting. There are currently 11
professionals dedicated to sustainability across the Sustainability and PSA Teams, with further
ESG resourcing captured in investment teams.
Navix Financial aspires to be a strategic advisor and long-term partner for our clients. We look at
innovative methods of communicating with our clients and consultants and have a content-rich
global website that contains a full array of frequent and timely market outlooks and investment
commentaries. We understand that many of our clients share an interest in exploring the
implementation of practices and procedures that are consistent with both current ESG thinking
and our fiduciary duties. Navix Financial engages clients regularly with our approach to, and
performance on, ESG issues.
The consideration of ESG topics permeates our business activities through our corporate
responsibility program. We strive for sustainable practices from our colleagues, in our
communities, and in our world. We seek to strengthen the communities in which we live, work and
invest, and to do this we encourage all employees to give back through supported volunteering
and charitable giving programs. We believe that diverse backgrounds create a diversity of
perspectives, experience and skills that is essential to meeting the evolving needs of our
clients. We are also committed to reducing the environmental footprints of our offices, as we
want to do our part in protecting our world in pursuit of a sustainable future.
