Stewardship

Stewardship

As a steward of client capital, Sands Capital has a fiduciary responsibility
to consider the full range of risks and opportunities that can potentially
influence investment outcomes.1

We believe that environmental, social, and governance (ESG) factors can play a material role in determining investment risk
and return. Therefore, we seek to own exceptional businesses that meet our six criteria as well as recognize and thoughtfully
manage potential ESG impacts. We aim to maximize shareowner value creation over the long term. 

Announcements
Sands Capital Highlights Integrated Stewardship Approach in Annual Report
In Aligning for a Better Future, we look at our stewardship efforts, which are evolving during a time of enormous change that is reshaping businesses, society, and the planet.
Announcements
Shaping a More Ethical Future for a Digital World
As responsible stewards of client capital, we must encourage corporations to set clear guidelines for appropriate data use.
Investment Strategy
Investing in the Face of Climate Change
As long-term stewards of capital, we believe it is critical that businesses, investors, and capital allocators factor climate change into their long-term strategies as they would any other environmental, social, or governance issue.

Our Guiding Principles

The purpose of our proprietary research is to identify high‐quality, leading growth franchises with sustainable business models, operating in attractive areas of growth and innovation. We place significant value on companies that embrace a long‐term perspective and that are thoughtful stewards of financial and non‐financial resources, which can include environmental and social aspects of the business. In particular, we believe effective governance and responsible corporate strategy are critical components of long‐term growth investing.

ESG factors vary in importance and are highly dependent on the region, country, industry, and company. We believe deep domain and company‐specific knowledge allows our investment professionals to make appropriate judgments about which ESG factors could have the greatest impact on all stakeholders. Analysis of these factors is integrated into the investment decision‐making process to the extent our team believes they may affect the sustainability of a company’s value‐creating potential.

We seek to maintain independence in the execution of our research. Though we may leverage external frameworks (e.g. Sustainability Accounting Standards Board materiality topics) and sources (e.g., ESG databases, governance advisory firms, academic researchers) to varying degrees to identify key ESG issues for the businesses we own, we do not rely on third‐party opinions when building conviction in our investment views.

We view engagement as a valuable tool to better understand management’s long‐term strategic vision. Therefore, we meet regularly with the management teams of portfolio companies to discuss how they manage ESG risks and opportunities, among other issues. When merited, we proactively express our views about business strategy, governance, financial reporting, executive compensation, and other stakeholder considerations.

We are committed to providing transparency into our ESG initiatives and how we think certain factors may relate to the long‐term growth prospects of the companies we own. We welcome client questions about the extent to which we have incorporated our understanding of relevant ESG factors into each investment case. We report regularly on our active ownership activities.

Engagement

Engagement is integral to our deep, business-focused research. It enables us to better understand management’s long-term vision and to discuss how they manage ESG risks and opportunities, among other issues. Because our portfolio businesses recognize our long-term investment orientation and focus on value creation, they typically welcome our engagement.

 

We engage with businesses to advance the following primary objectives: (1) to inform our investment cases, enabling us to build conviction in great businesses and add value for our clients; (2) to exchange perspectives on matters that are relevant to the interests of long-term shareholders; and (3) to discuss ballot proposals and inform our voting decisions.

Voting

Voting is an important part of our commitment to being an active, long-term business owner and to fulfilling our fiduciary duty to act in the best interests of our clients. Decisions are made by members of our investment research team. The process is typically directed by the lead analyst on the business, who will often consult with other members of the research team and Stewardship Committee.

Our evaluation of each meeting agenda typically considers company proxy documents, our own research on the business, recent discussions with management, and third-party analysis. While we do consider independent proxy advisers’ guidance, we do not delegate our voting or rely on their guidance in our voting decisions.

Collaborations

We build relationships with select organizations that enable us to understand stakeholders’ perspectives on sustainability issues, apply learnings to our research analysis and engagements with portfolio businesses, and collaborate with stakeholders to enhance corporate disclosure practices.

Stewardship Documents

Impact of Our Portfolio Businesses

Impact
Helping to Reduce the Environmental Impact of Transportation
Chinese electric car manufacturer NIO is enabling people to significantly reduce their carbon footprint.
Impact
Helping the Unbanked and Small Businesses Participate in the Digital Economy
Visa is bringing access to digital payments to millions of people around the globe.
Impact
Looking to Create More Value for Customers with Less Environmental Impact
Sustainability is a key component of the long-term growth strategy for the chemicals company Sika as it provides solutions to the construction, manufacturing, and transportation industries.
Impact
Latin America’s Biggest Online Marketplace Creates Opportunities for Millions
MercadoLibre’s ecommerce platform is enabling small and midsized business owners, including women entrepreneurs, to thrive.
Impact
Offering a Better Way to Detect Irregular Heartbeats
iRhythm’s Zio patch offers a more accurate solution to detect cardiac arrythmias.
1 All statements, opinions, and policies set forth on this page pertain solely to Sands Capital Management, LLC. Sands Capital Management is the investment adviser that provides Sands Capital’s Public Growth investment strategies. Sands Capital Management is a signatory to the Principles of Responsible Investment (PRI). Private Growth and Venture Capital strategies executed by Sands Capital Ventures, LLC, an affiliate of Sands Capital Management, LLC, are not subject to the statements, opinions, and policies set forth on this page. Sands Capital Ventures is not a PRI signatory.