ESG at Sionna

Sionna's Integration Approach

Sionna uses an integration approach to ESG – we include environmental, social and governance factors in investment analysis and investment decisions. As part of our in-depth research process, we use a robust Research Questionnaire to help us analyze various aspects of a company. Sionna has integrated ESG questions into the Questionnaire – formalizing our process to ensure that any potential issues are raised and addressed during our fundamental research and analysis.

ESG Impacts Investment Decisions

ESG factors help to inform our analysis as part of our bottom-up investment approach. A proper evaluation of a company’s exposure to ESG factors helps Sionna to determine what long-term returns to anticipate from a company, what level of risk to account for and what margin of safety to demand on our investment. By understanding the key drivers of a business and what obstacles may challenge our investment thesis, we can properly manage risk and remain good stewards of our clients’ capital.

Sionna's Responsible Investing Policy can be found here.

Ownership Practices

Sionna practices active ownership through:

  • Proxy Voting. Sionna practices active proxy voting and subscribes to Glass Lewis, a proxy advisory service, to obtain an independent perspective. Sionna considers the recommendations of Glass Lewis on proxy issues and will typically, but not always, vote in accordance with such recommendations.
  • Direct Engagements. Sionna meets with management teams and may discuss risks and opportunities relating to ESG topics, especially if said topics have been identified as material or potentially material to an investment.
  • Collective engagements. Sionna is a member of the board of the Canadian Coalition for Good Governance (CCGG), an entity designed to improve corporate governance in public companies, and offers feedback to the CCGG preceding meetings with management teams.

Sionna's Active Ownership Policy can be found here.

Sionna is a signatory of the United Nations-supported Principles for Responsible Investment (PRI) and reports annually in accordance with its provisions. Sionna’s Public Transparency Report is publicly available on the PRI website.

 

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