Responsible Investing at Galibier:
At Galibier, Responsible Investing refers to our approach of integrating material Environment, Social and Governance (ESG) factors into our investment research process.
Since the inception of the firm in 2012, ESG risk factors have been critical in our assessment of Galibier’s most important investment criteria: an enduring and sustainable competitive advantage.
We recognize that to effectively manage a corporation, directors and management teams must consider not only the interests of shareholders, but the interests of employees, customers, suppliers, creditors, and other stakeholders. Galibier makes investments on the basis of maximizing the potential for investment return and we believe companies that promote good ESG practices are more likely to outperform over the long-term
Long-term Investment Horizon:
We employ a long-term investment horizon that enables us to take advantage of opportunities that other managers with a shorter time horizon may not be able to. As long-term investors, we want to avoid management teams who make near-sighted decisions to enhance short term profitability. The risk of ‘short-termism’ often comes at the expense of ESG issues and can lead to lower long-term profitability.
External Resources:
Galibier’s investment team has access to the resources of the UN-supported Principles for Responsible Investing (UNPRI), the Canadian Coalition for Good Governance (CCGG) and Sustainalytics for independent ESG research.
ESG Integration at Galibier:
The integration of ESG factors is a natural part our investment process. We are dedicated to fundamental investment research and our strategy is to proactively evaluate companies in order to identify opportunities where a company’s stock is trading at or below our calculation of its intrinsic value. Given the fundamental, bottom-up investment decision making process at Galibier, we assess the impact of all risks, including ESG risks, on a stock-by-stock basis. A key component of ESG integration is materiality. ESG integration involves understanding the material ESG issues faced by a company that are considered highly likely to affect corporate performance and ultimately investment performance.
ESG Integration at Galibier – What it is:
- Analyzing financial and ESG information in order to identify material factors
- Assessing the potential impact of material financial and ESG factors on company performance
- Making investment decisions that include considerations of all material factors, including ESG factors.
ESG Integration at Galibier – What it isn’t:
- Prohibiting certain sectors/countries/companies from investment
- Ignoring traditional financial metrics
- Sacrificing portfolio returns in order to satisfy external perceptions of ESG integration
Proxy Voting:
Galibier’s policy is to vote all proxies.
Shareholder voting rights are an important factor in determining the quality of corporate governance and these voting rights need to be managed to maximize their potential. Galibier believes that one of its most important responsibilities is to vote in a manner which benefits the long-term interests of shareholders as proxy voting is one of the most effective methods for ensuring good corporate governance. Through our Proxy Voting Policies & Procedures, Proxy Voting Guidelines, voting decisions and ongoing engagement with company management teams, we work to use our influence as shareholders to bring about positive change on matters of governance.