Governance is a cornerstone of organisational sustainability. We believe that good governance lies at the heart of a sustainable business that delivers returns for all stakeholders, including shareholders, lenders, employees, suppliers and the communities in which we invest. As a responsible investor, OMAI maintains a continual focus on governance aspects in our investment decision-making and active stewardship of assets. OMAI applies good governance practices in all portfolio companies, with adherence to local governance related laws and a reference to the King IV Report on good corporate governance.
In terms of SDG 16 OMAI seeks to promote the rule of law (target 16.3), reduce illicit actions in portfolio companies (target 16.4), reduce corruption and bribery (target 16.5), increase transparency within portfolio companies (target 16.6) and promote inclusive, participatory and representative decision-making (target 16.7).
As part of the responsible stewardship commitment, OMAI investment professionals provide active input at the Board and Subcommittee levels in portfolio companies. From an ESG perspective OMAI strives to have portfolio companies either have a dedicated Subcommittee mandated to monitor ESG aspects, or ESG aspects included in another Subcommittee. OMAI has also included technical specialists with sector specific experience to join certain Boards as Independent non-executive directors, allowing for increased Board expertise and performance.
OMAI also supports portfolio companies in the implementation of robust environmental, social, health and safety management systems. The development and execution of such systems provides the functional governance aspects to the portfolio companies’ policies and commitments to sound environmental, social, health and safety practices. For a breakdown of governance progress see the ESG performance Governance theme.