Syncona Ltd
SRI Style:
Social Style
SDR Labelling:
Not eligible to use label (out of scope)
Product:
Investment Trust
Fund Region:
UK
Fund Asset Type:
Equity
Launch Date:
26/10/2012
Last Amended:
Oct 2023
Dialshifter (
):
Fund/Portfolio Size:
£1254.70m
(as at: 31/03/2023)
Total Responsible Ownership Assets:
£1254.70m
Total Assets Under Management:
£1254.70m
ISIN:
GG00B8P59C08
Contact Us:
Objectives:
We have outlined our plan to scale Syncona over the next 10 years, setting out our new long-term targets. Our ambition is to organically grow net assets to £5 billion by 2032, reflecting the potential returns available from a maturing and expanded portfolio. Other goals include creating three new companies per annum, to create a diversified portfolio of 20-25 leading life science businesses, including 3-5 companies in which we retain a significant ownership position to late-stage development.
Sustainable, Responsible
&/or ESG Overview:
Awaiting update from fund manager - last update received October 2023)
Syncona’s purpose is to invest to extend and enhance human life. We do this by creating, building and scaling companies to deliver transformational treatments to patients in areas of high unmet need.
Our strategy is to create, build and scale companies around exceptional science to create a diversified portfolio of 20-25 globally leading life science businesses for the benefit of all our stakeholders.
We are committed to managing our business in a sustainable way, investing responsibly and supporting our portfolio companies in making positive contributions to society by developing treatments that will make a difference to the lives of patients and their families.
We aim to have effective governance, a strong business culture, clear values, and positive engagement with our wider stakeholders and society through our work in life sciences and our support for charity.
We are actively engaged with our portfolio companies as they seek to build sustainable businesses.
Primary fund last amended:
Oct 2023
Information directly from fund manager.
Fund Filters
Sustainability - General
Has policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See individual entry information.
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
Aim to invest (and manage assets) in ways that help to address all or some of the UN's Sustainable Development Goals (SDGs). See https://sdgs.un.org/goals).
Publicly report performance against named sustainability objectives
Environmental - General
Has policies which relate to environmental issues. These will typically set out their stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary.
Climate Change & Energy
Encourage the transition to lower carbon activities through asset selection and / or responsible ownership activity.
Aims to ensure holdings will reduce their greenhouse gas emissions in line with targets set at COP21 in Paris. The core aim is to help achieve ‘net zero emissions by 2050’ and a ‘maximum global temperature increase of +1.5 to +2 degrees above preindustrial levels’. Strategies and opinions vary.
Ethical Values Led Exclusions
Has policies that set out their position on ethical or 'personal values' based issues. Strategies vary.
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Avoids companies that derive significant income from pornography and related areas. Strategies vary.
Has policies that require specific animal welfare standards to be met. These may reference well-known welfare standards (3Rs - Replace, Reduce, Refine) or certification schemes. Strategies vary.
Avoids companies that test their products on animals for purposes other than medical benefit (e.g. for cosmetics). Strategies vary.
Human Rights
Has policies relating to human rights issues. Typically require companies to demonstrate higher standards, although some managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary.
Has policies that exclude companies or other assets which operate in, or are owned by regimes which are not democratic, or where people may be oppressed. May use eg. Freedom House research. Strategies vary.
Meeting Peoples' Basic Needs
Has a thematic investment approach focusing on the ‘silver economy’ - in particular (typically) the issues and opportunities presented by changing demographics. This could include finance, healthcare and medicines and/ or longevity science to extend lifespans. Strategies vary.
Governance & Management
Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.
Avoids investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards.
Has policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination.
Has policies explaining how the managers take into account digital/cyber security related risks. Cyber policies will typically favour companies with higher standards or that are helping to solve problems - but strategies vary.
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Product / Service Governance
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
Asset Size
Invests more than half of their money in smaller or medium sized companies. (i.e. below around £5 -10 billion)
How The Fund/Portfolio Works
Invests in assets which can be 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address.
Considers both the 'positive' and 'negative' aspects of company behaviour and makes balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).
Fund Management Company Information
About The Business
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Find fund / asset managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
Find fund / asset management companies that aim to align all their investments (across all funds) to help meet the aims of the UN Sustainable Development Goals.
Find options run by managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies across all or most funds, products and services.
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Find fund / asset management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
Collaborations & Affiliations
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Resources
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
Engagement Approach
Find fund / asset management companies that are working with the companies they invest in to encourage more responsible corporate taxation.
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Fund / asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Fund / asset managers have stewardship strategies in place that focus on improving governance standards across investee assets
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Company Wide Exclusions
Find fund / asset management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.
Find fund / asset management companies that avoid investment in tobacco (manufacturing) companies across all their assets.
Climate & Net Zero Transition
Fund / asset management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
This fund / asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
This fund / asset management company plans to achieve net zero greenhouse gas (CO2e) emissions with the help of a scheme that will lock away an amount of carbon that is equivalent to the company’s own emissions – so that the end result is ‘net zero’. Calculations and scope vary.
Find fund / asset management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to 'zero'.
Transparency
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Find fund / asset management companies that will supply information about their sustainable and responsible investment activity on request.
Sustainable, Responsible &/or ESG Policy:
Syncona is committed to:
- Integrating sustainability issues into our investment and management processes, with the right culture, values and expectations for sustainability set at the beginning of the investment process.
- Supporting each portfolio company to establish appropriate governance and monitoring processes for their sustainability performance, to ensure the most relevant sustainability issues are taken into consideration at each stage throughout a company’s lifecycle.
Syncona’s purpose is fully integrated with our investment approach. Fundamental to each investment is the potential impact of the technology to deliver a transformational impact for patients in an area of high unmet medical need.
Our core model is to create, build and scale companies based around transformational science. The result is that in many cases, we are involved in a company from the very outset. Even when we invest in an existing business, it will often only have a handful of employees. Accordingly, in practice we would not typically exclude a company from investment outright as a result of sustainability concerns; instead, we would address any material issues upon investment and proactively look to shape the business as it grows.
Our responsible investment approach is focused on setting clear expectations for the following key issues for our portfolio companies:
- Access to medicine
- Animal welfare
- Good R&D practice
- Diversity and Inclusion
- Environmental impact
- High quality compliance and governance
At the company’s foundation, there are typically key academic founders working for the company, alongside a small number of employees. The companies may grow over a few years to 100 employees or more as their operations progress. It is therefore recognised that there should not be a “one size fits all” approach and that processes and initiatives should be proportionate, focused and not overly prescriptive.
However, at all stages we expect and encourage our portfolio companies to achieve our core standards.
When founding a Syncona company, we are focused on delivering transformational impacts for patients and delivering on our purpose to extend and enhance human life. By nature, our investment strategy means we primarily invest in technology that has the potential for a positive social impact. In our initial screen of investments, the investment team will consider whether there are any immediate issues, such as ethical considerations related to conducting trials in the proposed patient group or concerns in relation to founders or other parties involved in the investment. Where these concerns are raised, we may decide not to proceed or carry out further due diligence to see if they can be addressed.
For any new investment being considered, the final investment recommendation will include a section outlining the key beneficial impacts of the company in line with our purpose and any notable sustainability issues identified in the due diligence. These considerations will form a part of the investment decision and an investment may be precluded on this basis.
Syncona has a tobacco exclusion policy whereby Syncona will not make any direct investment in any tobacco company and will not knowingly make or continue to hold any investments in funds which would result in exposure to tobacco companies exceeding one per cent of the aggregate value of funds invested within Syncona’s capital pool.
For any new investment being considered, the final investment recommendation will include a section outlining the key beneficial impacts of the company in line with our purpose and any notable sustainability issues identified in the due diligence. These considerations will form a part of the investment decision and an investment may be precluded on this basis.
Our approach to responsible investment is focused on the key issues described above. We will work with our portfolio companies to support them in achieving our expectations in these areas, while maintaining a flexible approach that recognises the different stages of development and issues of these companies. Our activities split into two main areas.
- We ensure that our expectations and objectives are made clear to the teams at our portfolio companies at the outset. While each company is different and has flexibility to develop its own approach, we provide standard policies and other materials for the companies to consider where this is helpful. We can also provide support such as helping to make connections between portfolio companies or with our wider network where this would be useful to a company in addressing any questions.
- We encourage each company to put in place reporting frameworks to monitor progress on the key sustainability issues, and to provide that information to their board and Syncona. Asking them to put these frameworks in place helps to ensure that the board of each company gives proper consideration to these issues. The data in turn forms part of our own regular internal reporting and management processes.
These data in turn form part of our own regular internal reporting and are embedded into our processes for managing our investments. We also use the data to support reporting to the Syncona Board.
We hope that many of our companies will become thriving, independent businesses, and continue to grow in future, even after we are no longer shareholders. However, in some cases, there may be an opportunity to sell a company outright, most commonly to a larger pharmaceutical or biotech business who will want to acquire the products and pipeline that have been developed with a view to taking products to market. During any sale process, Syncona considers whether potential acquirers will continue to exercise appropriate stewardship and what steps it can take to address any concerns.
Following investment, Syncona continues to engage with each manager to understand how its approach to sustainability has been applied in practice, including any changes to its sustainability processes. This takes place through our routine monitoring of the manager, with a more focused sustainability appraisal at least once each year where the manager is expected to provide information to Syncona across a range of sustainability criteria. We also review any public reporting that the manager provides that is relevant to our investment.
Where we are not satisfied with how the manager is addressing sustainability issues in practice, we will engage with the manager on those issues, and may exit from the mandate or fund.
Process:
Syncona’s purpose is fully integrated with our investment approach. Fundamental to each investment is the potential impact of the technology to deliver a transformational impact for patients in an area of high unmet medical need. Our core model is to create, build and scale companies based around transformational science.
Prior to all investments, the Syncona team undertakes a thorough diligence process which aims to build a view of value, cost and risk associated with each opportunity. For all new investments the Syncona team begins with thorough technical and commercial diligence in order to assess the opportunity. Following the initial diligence, the team estimates the value of the opportunity and the associated budget at a high level in order to proceed to term sheet negotiations. Once the term sheet has been agreed, the team works closely with experts to put together the business plan, before finalising the investment strategy and returns analysis for the investment proposal. Once a deal has closed, several months may be required for the company to be fully operational and all key personnel to be in place.
Environmental, Social and Governance (ESG) issues are important to Syncona’s business and can be a significant driver of investment risk and investment value and thus form an integral part of our investment management process, including initial screening, due diligence, investment approval and ongoing portfolio company management. For any new investment being considered, the Investment Memorandum will include a section outlining the key beneficial impacts of the company in line with Syncona’s purpose and any notable ESG issues identified in the due diligence. These considerations will form a part of the investment decision and an investment may be precluded on this basis. Similarly, during any sale process, Syncona will consider whether potential acquirers will continue to exercise appropriate stewardship and what steps it can take to address any concerns.
Resources, Affiliations & Corporate Strategies:
The Board has ultimate oversight and accountability at Syncona. The Syncona team implements the strategy on a day to day basis and engages with the portfolio companies on ESG. The Syncona team has an ESG committee which is led by the Head of IR and which is overseen by the CEO. The ESG committee is made up of three members of the investment team, the General Counsel, the Head of HR and a member of the finance team. Syncona reports against the UN GRI and SDG frameworks, and became a signatory of the UN PRI in October 2021.
SDR Labelling:
Not eligible to use label (out of scope)
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
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|---|---|---|---|---|---|---|---|---|
Syncona Ltd |
Social Style | Not eligible to use label (out of scope) | Investment Trust | UK | Equity | 26/10/2012 | Oct 2023 | |
ObjectivesWe have outlined our plan to scale Syncona over the next 10 years, setting out our new long-term targets. Our ambition is to organically grow net assets to £5 billion by 2032, reflecting the potential returns available from a maturing and expanded portfolio. Other goals include creating three new companies per annum, to create a diversified portfolio of 20-25 leading life science businesses, including 3-5 companies in which we retain a significant ownership position to late-stage development. |
Fund/Portfolio Size: £1254.70m (as at: 31/03/2023) Total Responsible Ownership Assets: £1254.70m (as at: 31/03/2023) Total Assets Under Management: £1254.70m (as at: 31/03/2023) ISIN: GG00B8P59C08 Contact Us: investorrelations@synconaltd.com |
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Sustainable, Responsible &/or ESG OverviewAwaiting update from fund manager - last update received October 2023)
Syncona’s purpose is to invest to extend and enhance human life. We do this by creating, building and scaling companies to deliver transformational treatments to patients in areas of high unmet need. Our strategy is to create, build and scale companies around exceptional science to create a diversified portfolio of 20-25 globally leading life science businesses for the benefit of all our stakeholders. We are committed to managing our business in a sustainable way, investing responsibly and supporting our portfolio companies in making positive contributions to society by developing treatments that will make a difference to the lives of patients and their families. We aim to have effective governance, a strong business culture, clear values, and positive engagement with our wider stakeholders and society through our work in life sciences and our support for charity. We are actively engaged with our portfolio companies as they seek to build sustainable businesses. |
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Primary fund last amended: Oct 2023 |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
Sustainability policy
Has policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See individual entry information.
Encourage more sustainable practices through stewardship
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
UN Sustainable Development Goals (SDG) focus
Aim to invest (and manage assets) in ways that help to address all or some of the UN's Sustainable Development Goals (SDGs). See https://sdgs.un.org/goals).
Report against sustainability objectives
Publicly report performance against named sustainability objectives Environmental - General
Environmental policy
Has policies which relate to environmental issues. These will typically set out their stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. Climate Change & Energy
Encourage transition to low carbon through stewardship activity
Encourage the transition to lower carbon activities through asset selection and / or responsible ownership activity.
Paris aligned strategy
Aims to ensure holdings will reduce their greenhouse gas emissions in line with targets set at COP21 in Paris. The core aim is to help achieve ‘net zero emissions by 2050’ and a ‘maximum global temperature increase of +1.5 to +2 degrees above preindustrial levels’. Strategies and opinions vary. Ethical Values Led Exclusions
Ethical policies
Has policies that set out their position on ethical or 'personal values' based issues. Strategies vary.
Tobacco & related product manufacturers excluded
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Armaments manufacturers avoided
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Civilian firearms production exclusion
Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Alcohol production excluded
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Gambling avoidance policy
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Pornography avoidance policy
Avoids companies that derive significant income from pornography and related areas. Strategies vary.
Animal welfare policy
Has policies that require specific animal welfare standards to be met. These may reference well-known welfare standards (3Rs - Replace, Reduce, Refine) or certification schemes. Strategies vary.
Animal testing - excluded except if for medical purposes
Avoids companies that test their products on animals for purposes other than medical benefit (e.g. for cosmetics). Strategies vary. Human Rights
Human rights policy
Has policies relating to human rights issues. Typically require companies to demonstrate higher standards, although some managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary.
Oppressive regimes (not free or democratic) exclusion policy
Has policies that exclude companies or other assets which operate in, or are owned by regimes which are not democratic, or where people may be oppressed. May use eg. Freedom House research. Strategies vary. Meeting Peoples' Basic Needs
Demographic / ageing population theme
Has a thematic investment approach focusing on the ‘silver economy’ - in particular (typically) the issues and opportunities presented by changing demographics. This could include finance, healthcare and medicines and/ or longevity science to extend lifespans. Strategies vary. Governance & Management
Governance policy
Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.
Avoids companies with poor governance
Avoids investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards.
Anti-bribery & corruption policy
Has policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination.
Digital / cyber security policy
Has policies explaining how the managers take into account digital/cyber security related risks. Cyber policies will typically favour companies with higher standards or that are helping to solve problems - but strategies vary.
Encourage board diversity e.g. gender
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage higher ESG standards through stewardship activity
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity Product / Service Governance
ESG integration strategy
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature. Asset Size
Over 50% small / mid cap companies
Invests more than half of their money in smaller or medium sized companies. (i.e. below around £5 -10 billion) How The Fund/Portfolio Works
Assets mapped to SDGs
Invests in assets which can be 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address.
Balances company 'pros and cons' / best in sector
Considers both the 'positive' and 'negative' aspects of company behaviour and makes balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
SRI / ESG / Ethical policies explained on website
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies). Fund Management Company InformationAbout The Business
Responsible ownership / stewardship policy or strategy (AFM companywide)
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
ESG / SRI engagement (AFM companywide)
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Vote all* shares at AGMs / EGMs (AFM companywide)
Find fund / asset managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
SDG aligned aims / objectives (AFM companywide)
Find fund / asset management companies that aim to align all their investments (across all funds) to help meet the aims of the UN Sustainable Development Goals.
Responsible ownership policy for non SRI / sustainable options (AFM companywide)
Find options run by managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies across all or most funds, products and services.
Integrates ESG factors into all / most research (AFM companywide)
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
In-house diversity improvement programme (AFM companywide)
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Diversity, equality & inclusion engagement policy (AFM companywide)
Find fund / asset management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide). Collaborations & Affiliations
PRI signatory
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'. Resources
Use specialist ESG / SRI / sustainability research companies
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors. Engagement Approach
Encourage responsible corporate taxation (AFM companywide)
Find fund / asset management companies that are working with the companies they invest in to encourage more responsible corporate taxation.
Engaging on climate change issues
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Engaging on diversity, equality & / or inclusion issues
Fund / asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Engaging on governance issues
Fund / asset managers have stewardship strategies in place that focus on improving governance standards across investee assets
Engaging on responsible supply chain issues
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards Company Wide Exclusions
Controversial weapons avoidance policy (AFM companywide)
Find fund / asset management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.
Tobacco avoidance policy (AFM companywide)
Find fund / asset management companies that avoid investment in tobacco (manufacturing) companies across all their assets. Climate & Net Zero Transition
Net Zero commitment (AFM companywide)
Fund / asset management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Net Zero - have set a Net Zero target date (AFM companywide)
This fund / asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Encourage carbon / greenhouse gas reduction (AFM companywide)
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Carbon offsetting - offset carbon as part of net zero plan (AFM companywide)
This fund / asset management company plans to achieve net zero greenhouse gas (CO2e) emissions with the help of a scheme that will lock away an amount of carbon that is equivalent to the company’s own emissions – so that the end result is ‘net zero’. Calculations and scope vary.
In-house carbon / GHG reduction policy (AFM companywide)
Find fund / asset management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Working towards a ‘Net Zero’ commitment (AFM companywide)
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to 'zero'. Transparency
Full stewardship / responsible ownership policy information on company website
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Full stewardship / responsible ownership policy information available on request
Find fund / asset management companies that will supply information about their sustainable and responsible investment activity on request. Sustainable, Responsible &/or ESG Policy:Syncona is committed to:
Syncona’s purpose is fully integrated with our investment approach. Fundamental to each investment is the potential impact of the technology to deliver a transformational impact for patients in an area of high unmet medical need. Our core model is to create, build and scale companies based around transformational science. The result is that in many cases, we are involved in a company from the very outset. Even when we invest in an existing business, it will often only have a handful of employees. Accordingly, in practice we would not typically exclude a company from investment outright as a result of sustainability concerns; instead, we would address any material issues upon investment and proactively look to shape the business as it grows. Our responsible investment approach is focused on setting clear expectations for the following key issues for our portfolio companies:
At the company’s foundation, there are typically key academic founders working for the company, alongside a small number of employees. The companies may grow over a few years to 100 employees or more as their operations progress. It is therefore recognised that there should not be a “one size fits all” approach and that processes and initiatives should be proportionate, focused and not overly prescriptive. However, at all stages we expect and encourage our portfolio companies to achieve our core standards. When founding a Syncona company, we are focused on delivering transformational impacts for patients and delivering on our purpose to extend and enhance human life. By nature, our investment strategy means we primarily invest in technology that has the potential for a positive social impact. In our initial screen of investments, the investment team will consider whether there are any immediate issues, such as ethical considerations related to conducting trials in the proposed patient group or concerns in relation to founders or other parties involved in the investment. Where these concerns are raised, we may decide not to proceed or carry out further due diligence to see if they can be addressed. For any new investment being considered, the final investment recommendation will include a section outlining the key beneficial impacts of the company in line with our purpose and any notable sustainability issues identified in the due diligence. These considerations will form a part of the investment decision and an investment may be precluded on this basis. Syncona has a tobacco exclusion policy whereby Syncona will not make any direct investment in any tobacco company and will not knowingly make or continue to hold any investments in funds which would result in exposure to tobacco companies exceeding one per cent of the aggregate value of funds invested within Syncona’s capital pool. For any new investment being considered, the final investment recommendation will include a section outlining the key beneficial impacts of the company in line with our purpose and any notable sustainability issues identified in the due diligence. These considerations will form a part of the investment decision and an investment may be precluded on this basis. Our approach to responsible investment is focused on the key issues described above. We will work with our portfolio companies to support them in achieving our expectations in these areas, while maintaining a flexible approach that recognises the different stages of development and issues of these companies. Our activities split into two main areas.
These data in turn form part of our own regular internal reporting and are embedded into our processes for managing our investments. We also use the data to support reporting to the Syncona Board. We hope that many of our companies will become thriving, independent businesses, and continue to grow in future, even after we are no longer shareholders. However, in some cases, there may be an opportunity to sell a company outright, most commonly to a larger pharmaceutical or biotech business who will want to acquire the products and pipeline that have been developed with a view to taking products to market. During any sale process, Syncona considers whether potential acquirers will continue to exercise appropriate stewardship and what steps it can take to address any concerns. Following investment, Syncona continues to engage with each manager to understand how its approach to sustainability has been applied in practice, including any changes to its sustainability processes. This takes place through our routine monitoring of the manager, with a more focused sustainability appraisal at least once each year where the manager is expected to provide information to Syncona across a range of sustainability criteria. We also review any public reporting that the manager provides that is relevant to our investment. Where we are not satisfied with how the manager is addressing sustainability issues in practice, we will engage with the manager on those issues, and may exit from the mandate or fund. Process:Syncona’s purpose is fully integrated with our investment approach. Fundamental to each investment is the potential impact of the technology to deliver a transformational impact for patients in an area of high unmet medical need. Our core model is to create, build and scale companies based around transformational science. Prior to all investments, the Syncona team undertakes a thorough diligence process which aims to build a view of value, cost and risk associated with each opportunity. For all new investments the Syncona team begins with thorough technical and commercial diligence in order to assess the opportunity. Following the initial diligence, the team estimates the value of the opportunity and the associated budget at a high level in order to proceed to term sheet negotiations. Once the term sheet has been agreed, the team works closely with experts to put together the business plan, before finalising the investment strategy and returns analysis for the investment proposal. Once a deal has closed, several months may be required for the company to be fully operational and all key personnel to be in place. Environmental, Social and Governance (ESG) issues are important to Syncona’s business and can be a significant driver of investment risk and investment value and thus form an integral part of our investment management process, including initial screening, due diligence, investment approval and ongoing portfolio company management. For any new investment being considered, the Investment Memorandum will include a section outlining the key beneficial impacts of the company in line with Syncona’s purpose and any notable ESG issues identified in the due diligence. These considerations will form a part of the investment decision and an investment may be precluded on this basis. Similarly, during any sale process, Syncona will consider whether potential acquirers will continue to exercise appropriate stewardship and what steps it can take to address any concerns. Resources, Affiliations & Corporate Strategies:The Board has ultimate oversight and accountability at Syncona. The Syncona team implements the strategy on a day to day basis and engages with the portfolio companies on ESG. The Syncona team has an ESG committee which is led by the Head of IR and which is overseen by the CEO. The ESG committee is made up of three members of the investment team, the General Counsel, the Head of HR and a member of the finance team. Syncona reports against the UN GRI and SDG frameworks, and became a signatory of the UN PRI in October 2021. SDR Labelling:Not eligible to use label (out of scope) |
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