Declaration of Bestinver Responsible Investment Principles

Our commitment to responsible investment

As an example of our commitment to responsible investment, Bestinver is a signatory to the UNPRI (Principles for Responsible Investment, which is supported by the Unites Nations), accepting its fundamental principles:

  • 1. Bestinver wants to play an active role, helping to make a positive impact on the prosperity of society.

    • Bestinver is focused on long-term value creation. The integration of ESG criteria into our investment processes is key to complying with our fiduciary duty to our unitholders and to improving risk managements, long-term performance and the impact of our investments on society.

    2. Bestinver seeks to proactively influence the companies that we invest in to drive real improvements in their ESG performance.

    • We play a proactive role in the improvement of the sustainable performance of the companies that we analyse and invest in, through engagement and proxy voting policies and actions, which we will document, monitor and regularly report to our unitholders and to the market.

  • 3. Bestinver intends to carry out high-quality analysis, both internal and external, in order to achieve the best results for our clients.

    • We complement the work carried out by the investment team through the addition of renowned external data providers that improve our analytical capabilities and involvement in the companies within our investment universe. The objective is to have detailed knowledge about the companies that we invest in, their risks and their opportunities.

    4. Bestinver is committed to promoting and disseminating ESG and responsible investment policies.

    • Our responsibility is to have a positive impact on society. To do this, we use our position and influence on companies and other groups of opinion makers in order to achieve the positive effect we are seeking.

    • Bestinver will publicly report on the application of its ESG policies and activities and will provide information on how they have been implemented, complying with our responsibility for the effective fulfilment of our commitments.

    • Bestinver is part of and actively participates in some of the principal responsible investment organisations and interest groups, both national and international, in order to contribute to the development of a more sustainable society for our future generations.

Integration of ESG criteria into investment processes

  • Our internal ESG rating methodology

    In its analysis and investment decision-making processes, Bestinver includes an internal ESG rating methodology that ensures that all assets are evaluated in accordance with these criteria before their inclusion in portfolios.

    These ESG ratings complement the traditional financial indicators that we use when allocating an intrinsic value to each company. The investment team’s deep knowledge of these ratings and the information from renowned external ESG data providers form the basis for the allocation of these values.

    The evaluation and categorisation methodology of assets in accordance with ESG criteria is consequently incorporated into the investment analysis and decision-making process.

    Principles and Policies

Integration of ESG criteria into investment processes

 

  • Eligible investment universe

    Before the evaluation of investment opportunities, we use the information from external data providers and the extensive knowledge of the investment team to exclude certain companies from our universe. We are talking about those companies that are involved in activities included in our Exclusion Policy and that do not require specific analysis to understand their sustainable transformation plans.

    If the exclusion policies are linked to specific transition and/or transformation plans, or to membership of bodies or to having international certificates on responsible practices, the investment team must justify, document and submit for approval their inclusion in the eligible universe before the investment decision is made.

    Allocation of internal ratings

    Once the eligible universe is established, the team of analysts and managers identifies and submits for internal discussion potential investment opportunities based on their business models, financial performance and valuation.

    The identified opportunities that are considered to be potential additions to portfolios are subjected to detailed fundamental analysis. It is at this phase in the process when an exhaustive evaluation is carried out of their performance and the main environmental, social and corporate governance risks and opportunities. Only after this analysis is an internal ESG rating allocated, which will classify companies into 4 categories: Gold, Green, Amber and Red.

    Independently of the category that we allocate them to, Bestinver will also carry out continuous dialogue and involvement (engagement) activities with companies, attempting to influence them in the constant improvement of their ESG performance.

  • Monitoring of the portfolio

    We continuously monitor the ESG performance and indicators of the companies that we have in our portfolios, re-evaluating their rating based on our internal analysis and the information provided by our external data providers.

    If severe risks associated with their involvement in activities as defined in our exclusion policies appear in any of them after their addition, their investment must be re-evaluated.

    This review could result in a change to the rating or, in the most serious cases, lead to the removal of the company from our portfolios. Divestments will always be carried out depending on the severity of the identified risks and within a reasonable period to protect the interests of our investors.

    The investment and risk team will report the performance of portfolio ratings and the main identified risks to the bodies established in the ESG governance model, along with the engagement actions taken and their impact on the performance of the companies.

    Responsible Investment Principles and Policies

    To learn more about Bestinver's responsible investment principles and policies, we have prepared a document where you can find all the detailed information.

    Download document

Exclusion policy

  • A more sustainable economic model

    Bestinver excludes sectors and companies from its investment universe whose businesses do not make a positive contribution to a more sustainable economic model and where we cannot see the potential for transformation through our activities of proactive influence.

    Bestinver tries to encourage and promote better performance in terms of sustainability by the companies that comprise our investment universe.

    Bestinver has classified these exclusion policies into three groups of companies, depending on the impact their businesses have on society and the environment:

    - Group 1: The companies in this group are excluded from the investment universe of Bestinver. We are referring to those that are involved (whatever the percentage of their turnover) in certain businesses whose nature and impact mean that we are unable to promote significant improvements through our proactive influence.

    - Group 2: this group includes companies that Bestinver considers «unsustainable», unless there is a strong commitment by management to transform their business or to carry it out responsibly.

    - Group 3: The companies included in this group will be «under observation» by Bestinver. This means that we make a commitment to perform exhaustive analysis to make sure that they are carrying out their business responsibly and that they have established transformation plans to improve their environmental, social and/or corporate governance performance.

Active ownership policies

  • Dialogue, engagement and proxy voting activities

    As an asset management company focused on long-term value creation, Bestinver has the fiduciary duty to make investment decisions that are in the best interests of its clients and seek to maximise the value of their investments.

    We understand that well managed and governed companies tend to prosper, and therefore we are committed to active cooperation with the companies in our portfolio so that they can effectively adopt the best practices related to environmental, social and good governance policies.

    Through this cooperation, Bestinver works to develop a comprehensive, exhaustive understanding of the companies we invest in, while promoting a more sustainable and fairer society.

    This active ownership commitment includes dialogue, engagement and proxy voting activities.

Bestinver adheres to the Principles for Responsible Investment (PRI)

The PRI principles make up a global network for the promotion of responsible investment backed by the United Nations and with signatories from more than 3,000 organizations around the world.

Responsible investment