ESG Considerations

As part of the investment process, alongside traditional fundamental analysis and a deep bottom-up knowledge of companies and industries, Zennor consider material ESG factors.

Sustainability characteristics are integral to analysis, valuation and risk assessment. Combined with publicly available ESG information, qualitative screening and a qualitative assessment, the managers create a proprietary sustainability score for each potential investee company. Zennor focus on Principle Additional Indicator (PAI) analysis – which is integrated into the sustainability research process.

Together with their internal screening and engagement tracker, the Zennor team draw on a range of technology, data, and research from external providers.

Engagement and Stewardship

Zennor regularly engage with companies to increase disclosures in line with international standards and best practice.

Engagements are prioritised based on where they have the highest prospects of achieving results. As part of the core strategy, Zennor only invest in companies where there’s a willingness to change; engagement is focused on the firms and on the areas with the greatest need to evolve, and the highest likelihood of progress.

Zennor believe that voting is one of the fundamental responsibilities of stewardship and an opportunity to support change. The team take great care with voting and often engage with firms around the voting period to ensure their views are heard, and that management understands support is contingent on continued progress and performance. In Japan, even modest levels of non-support can be sufficient to drive an internal reassessment.

Reporting

Zennor Asset Management produces semi-annual Active Ownership reports including voting and engagement statistics, and recent engagement case studies.

The Luxembourg domiciled flagship Zennor Japan fund is an Article 8 reporting fund under SFDR.

WS Zennor Japan Equity Income Fund does not have a sustainable investment objective and is not promoted as a sustainable investment fund.

Industry Participation

Zennor’s experienced team acts as a valued resource to a range of Japanese corporate governance stakeholders and institutions.