This report, based on the 12 UK Stewardship Code Principles, sets out Baillie Gifford’s stewardship approach, highlighting some of the key activities and improvements made over the course of the year. As at 31 December 2021, Baillie Gifford had 33 dedicated ESG analysts working alongside an investment team of 140 people. These ESG analysts engage both directly with the companies in which we invest (or potentially invest) and assist our investment teams with ESG considerations as part of the investment decision-making process. Running concentrated portfolios that contain only a tiny fraction of the available investable universe, our combined approach of dedicated ESG analysts, working alongside investment specialists, helps us to fulfil our duty to be responsible investors.
Importantly, we do not adopt a one-size-fits-all approach. Companies should think and behave according to
their stage of development. The ‘correct’ governance model for an early-stage entrepreneurial growth company
is likely to be very different from that of a mature and sizeable incumbent. Within the firm we have spent a
great deal of time ensuring that each of our investment teams has the autonomy to implement ESG principles
consistent with their own philosophy and processes. Though a top-down, one-size-fits all approach to ESG may
be easier to implement and enforce, we do not think it is likely to serve our clients well, reflect the relationships
our teams have with individual companies or maximise our effectiveness.