ESG+C®

ESG+C® Factsheet - Q4 2023

Summary

Integrating environmental, social and governance (ESG) factors into the investment process has become common over the years, but a crucial and missing component within this is corporate culture. Whilst there is strong evidence showing that ESG leaders outperform their peers, we believe that companies with strong corporate cultures provide an additional driver of outperformance in the long term. This factsheet captures the state of the Mobius Emerging Markets Fund’s portfolio at the end of Q4 2023 across four dimensions: environmental, social, governance, and culture.

Portfolio Highlights

In Q4 2023, we continued to actively engage with our portfolio companies through the use of video conferencing and in person meetings. The Portfolio Highlights section below displays some of the progress observed during the quarter.

Environmental

Carbon Disclosure Project Portfolio Company Scores⁴

Portfolio Highlights

  • Vinamilk has been recognised as a leader in sustainability, ranking in the top 5 in the dairy industry globally according to Brand Finance.

Social

Top 3 most reported Sustainable Development Goals (SDG)⁶

3. Good Health And Well-Being
13 out of 16
8. Decent Work & Economic Growth
11 out of 16
4. Quality Education
11 out of 16

Portfolio Highlights

  • Dreamfolks started reporting their contribution to UN SDG in their first published annual report.
  • eMemory Won TSMC’s OIP Partner of the Year Award for the 14th consecutive year.

Governance

Portfolio Highlights

  • Persistent Systems was included in the MSCI India, S&P BSE 100 indices and S&P BSE SENSEX Next 50 indices.
  • E Ink is listed in both the DJSI World and DJSI Emerging Markets as the global leader within the Technology Hardware & Equipment Group.

Culture

Glass Door Portfolio Score

4.00
/
5.00

Portfolio Highlights

  • 360 One has been included in the “Progressive Place to Work 2023” by ET Now.
  • Clicks Group CEO Bertina Engelbrecht won three awards and Clicks Group was a finalist in two categories at the 2023 Gender Mainstreaming Awards.

Footnotes

1. The engagement breakdown is for Q4 2023 and is based on 176 engagements in the fields of environment, social, governance, culture and operations and capital allocation issues.

2. As part of the 〖"ESG+C"〗^"®" assessment, four different dimensions are assessed: environmental: entails factors like climate change, natural resources, pollution & waste as well as environmental opportunities; social: refers to factors such as human capital, product liability and social opportunities; governance: refers to the reporting methods, the ownership structure as well as checks and balances; culture: contains factors like the degree of freedom, equality, recruitment, innovation and remuneration.

3. Portfolio companies are assessed on a binary basis whether they do or do not comply with the assessed metric. The number of companies complying with the metric is expressed as a percentage of the portfolio.

4. External CDP Score: The Carbon Disclosure Project increases environmental transparency and accountability of companies and enables progress tracking. The scoring ranges from A, A- to B, B-to C, C- to D, D- and F.

5. Sustainable Development Goals: Out of the 13 portfolio companies reporting on the united nations sustainable development goals, the top 3 goals are selected.

6. The determined company percentages are weighted according to their weight in the portfolio. The weighted average is reported as a percentage of the portfolio.

7. Founder-/Family-owned Companies: Reports the percentage of portfolio companies with the family or founder holding 5% or more.

8. Block investor: Refers to an individual or organization owning a substantial amount of the company’s shares. The hurdle rate is set at 15%.

9. Dedicated Investor Relations Professional: Reports companies as a percentage of the portfolio having appointed an employee responsible for investor relations.

10. External Glassdoor Score: Glassdoor is one of the world’s largest job and recruiting sites providing scores for companies ranging from 0 to 5. The Portfolio score is the average of 22 available scores among the portfolio.

11. Dedicated Sustainability Professional: Reports companies as a percentage of the portfolio having a dedicated employee in charge of the company’s sustainability activities.