Baillie Gifford

With capabilities in equities, fixed income, and multi-asset solutions, the firm employs a rigorous long-term, bottom-up approach to investing across global markets. Baillie Gifford’s distinct approach to ESG is one focused on engagement and opportunity. On engagement, Baillie Gifford is an active investor that works with the companies it invests in, not only to manage ESG risks, but to help uncover potential ESG-driven competitive advantages. Similarly, Baillie Gifford sees ESG as a source of potential growth drivers that can lead to investment opportunities, focused on companies with the innovation, transformational leadership, and/or strong corporate citizenship needed to capitalize on sustainability-focused world.

The company is based in Edinburgh, Scotland, and is further supported by global offices around the world. As of 2021, Baillie Gifford has won the top prize at the FTAdviser Investment 100 Club Awards for five years running.¹ 
 

¹ FT Adviser, September 2, 2021.

Its stewardship-driven investment model is built on the established United Nations Compact Principles for Responsible Business: human rights, labour, the environment, and anti-corruption. Baillie Gifford distinguishes itself by using these principles to identify company growth drivers that can deliver higher-than-market returns to investors. The firm employs a rigorous multi-step ESG-integrated process in constructing a portfolio of high-conviction stock holdings reflecting sustainable growth opportunities. Potential investments are first screened for growth-factor characteristics, such as the ability to grow faster than the market, a competitive edge over its industry peers, and strong earnings or other profitability metrics. Companies are then assessed based on exclusion and positive inclusion factors. Baillie Gifford excludes investments in companies that derive a material portion of their revenue from specific industries, such as weapons and tobacco. Inclusion factors encompass a company’s commitment to delivering value to society, its balanced consideration of stakeholders, and its degree of responsible corporate culture. Finally, potential investments are screened based on an assessment of the ESG risks and opportunities they represent.