At Malabar, responsible investment principles are imbedded and integrated into our investment philosophy and the way in which we evaluate businesses.
We believe that a focus on environmental, social, and corporate governance (“ESG”) factors contributes to the long-term success of every business, and hence has a positive impact on the value of our investment. We also believe that exhibiting leadership in building ESG sustainability into their business practices, reflects the quality and far sightedness of the management team, and hence a responsible approach in this arena indicates a better run business and more dependable and sustainable economic value creation for investors in the long run.
We are cognizant of the fact that a strong focus on ESG factors by the companies we invest in can significantly reduce the ‘risk’ of an investment over a long investment horizon, as ESG issues often have a direct financial impact on the organisation, and consequently investor returns.
We are signatories to the United Nations Principles of Responsible Investment (“UN PRI”), which provide a voluntary and aspirational framework for incorporating ESG issues into investment decision making and ownership practices. This commitment to UN PRI not only drives us to improve how we incorporate ESG factors into our analysis, but also compels us to actively encourage the companies we invest in to engage in superior ESG practices, both in their organisation and in that of their suppliers.
CORPORATE SOCIAL RESPONSIBILITY ("CSR")
As we believe that low literacy rates are a key social issue for India, we have taken the decision to direct a large proportion of our CSR expenditure towards non-profit organisations that operate in the education space. We believe that access to a good education is necessary to help children out of poverty and transform both their lives and that of future generations to come. One of the organisations we have chosen to fund is Akanksha as it has made a tremendous impact on thousands of children through their schools and educational programs.
Akanksha is a non-profit organisation in the education space that helps children from low-income communities. Akanksha has been educating children across Mumbai and Pune since 1991, first in after-school centres, and since 2007 through their own network of schools built on public-private partnerships. By collaborating with the Municipal Corporations of Mumbai and Pune and working with their government schools, Akanksha has been able to scale up its impact and reach more children. They currently provide a high-quality education to 9,300 students through their 21 schools.
Covid-19 highlighted the underinvestment in India’s healthcare system. As countless lives were lost due to the poor infrastructure, we tried to support organisations operating in this space by providing both funds and medical supplies.
"We make a living by what we get, we make a life by what we give.”
- WINSTON CHURCHILL