At Merlon, we assess every potential investment with ESG factors in mind, because ESG plays a key role in determining the sustainability of free cash flow — our primary measure of value.
We incorporate ESG considerations throughout our investment process, including:
Merlon acknowledges that not all ESG factors will be relevant to all investments. As such, for each of our investee companies, Merlon considers what matters most depending on the companies’ sector, business model and governance practices.
Engagement
Merlon is very committed to active ownership and company engagement with two key outcomes in mind:
This includes writing formal letters to board directors, summarising the key investment and ESG issues that have been identified to date, calls for action and seeking a response from the company.
Our assessment of a company’s ESG exposure and performance drives and priorities our proactive and formal engagement agenda.
For further detail on how we incorporate ESG and Engagement in our investment process please refer to our ESG Policy.
Read our latest insights:
ESG Integration at Merlon – Part 1 : Philosophy
ESG Integration at Merlon – Part 2: Process
ESG Integration at Merlon – Part 3: Engagement
We believe people are motivated by short-term outcomes, overemphasise recent information and are uncomfortable having unpopular views.
Deep consideration of governance, social and environmental issues - coupled with active ownership - enhances investment, business and community outcomes.
At Merlon we focus on assessing the sustainability of a company's free cash flow because we believe that is the basis on which companies should be valued.
“A culture of integrity, passion and purpose. Deep
client trust. Investment outcomes worth the trust.
A business built to outlast us.”
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