Baillie Gifford is an investment management firm which is owned by partners who work within the firm. It manages global, international and regional equity, multi-asset and
fixed income mandates. Baillie Gifford was founded in Edinburgh, Scotland, in 1908 and still has its headquarters in the city. It has offices in New York and London and as of March 31, 2022 it has 1,684 employees.
Baillie Gifford has an engagement policy where it describes its approach on sustainability themes and impact topics with clients and investees. The financial institution also publishes an investment stewardship report describing how the engagement policy is applied in practice and it publishes case studies describing where it has engaged successfully with investees on sustainability themes and impact topics.
As a member of The Net Zero Asset Managers initiative Baillie Gifford has set a target of net-zero financed emissions by 2050. The financial institution also discloses the key sectors it has identified as priorities to engage with on climate change, and the rationale for choosing these priorities. Furthermore, the financial institution discloses nature- and biodiversity-related impacts as one of its engagement topics/priorities with companies to which it provides financial services.
Baillie Gifford discloses a public commitment to protect personal data. Furthermore, the financial institution discloses a global tax strategy and an executive-level body has responsibility for its global tax strategy.
In terms of its approach to senior leadership accountability, Baillie Gifford’s board has oversight responsibility over its climate strategy, it is unclear that the end responsibility for all sustainability themes lies with this body. Furthermore, there is no evidence that the financial institution links the remuneration of its executive or management teams to sustainability performance criteria. It also has an opportunity to disclose the proportion of women in senior leadership roles as well as how it addresses any gender pay gaps. In terms of its approach to engagement, there is no evidence that the financial institution’s engagement policy includes clear frameworks with success criteria and escalation points.
Baillie Gifford could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. In addition, there is no evidence that the financial institution discloses alignment with the Paris Agreement as one of its engagement priorities with companies to which it provides financial services. Moreover, there is no evidence that the financial institution discloses its financing activities devoted to climate solutionsand that it is committed to minimising the negative impacts it has on nature and biodiversity.
There is no evidence that Baillie Gifford has a publicly available policy statement committing it to respect human rights laid out in the United Nations Guiding Principles on Business and Human Rights. The financial institution has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. Additionally, the financial institution has an opportunity to disclose the proportion of its total direct operations workforce for each employee category by age group, gender or another indicator of diversity. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of investments directed towards low-income developing countries.