293. Navigating complexity: ESG and Human Rights

Dr. Paul Jourdan, CEO of Amati Global Investors, explores the unique ESGH approach employed by Amati, shedding light on the importance of adding the "H" for Human Rights to ESG, emphasising its significance as a separate category of investment risk. Drawing on experiences over 25 years, he discusses the blind spots in the investment community regarding human rights abuses in supply chains and their far-reaching consequences.To mark Human Rights Day on the 10th of December, the discussion delves into the profound impact of human rights, particularly in international trading of commodities like oil and gas. Paul highlights the oversight in neglecting human rights considerations in these critical sectors, pointing out real-world implications, such as the funding of geopolitical conflicts through resource purchases.Overall, this interview provides a comprehensive overview of Amati's ESGH approach, offering investors a deeper understanding of responsible and ethical investment practices in the ever-evolving landscape of financial markets. It’s not an interview to be missed.What’s covered in this episode: Why Human Rights should be explicitly added to ESG frameworksWhere the Human Rights framework came fromHow do you balance ESG investing with oil and gas investing?The risk analysis of ESGHThe “yes or no” criteria for Human Rights exclusionsApplying ESGH to natural resource investingThe ‘natural resources curse’Why we still need oil and gas for net zero targetsDifferent types of ESGH analysis undertakenThe difficulty of analysing supply chains and the example of BoohooAre we over-focused on climate change reporting?Why carbon emissions aren’t the most important ESGH factorThe difficulty of analysing modern slavery in a companyInvestigating and digging deeper to find potential controversiesHow “ESG mania in 2021” created unrealistic thinkingExamples of how the ESGH framework applies to engagement and stock selectionMore about Amati Global Investors: Amati is a specialist fund management boutique based in Scotland. The Elite Rated WS Amati UK Listed Smaller Companies fund has a very solid investment framework, which has consistently worked for 20 years, under Dr. Paul Jourdan’s management. The Elite Radar WS Amati Strategic Metals fund was launched in March 2021, with the company also running a number of other specialist strategies.Read more about Amati Global Investors ESG ConsiderationsLearn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.