We evaluate ESG considerations from a fundamental, bottom-up perspective and engage to promote positive change

Environmental, Social and Governance

We believe that Environmental, Social and Governance (ESG) best practices are critical to running a business and to assessing the intrinsic value of any investment. Southeastern incorporates ESG considerations into our analysis of companies, vetting of management teams and disciplined valuation process. As long-term business owners, we approach ESG considerations from a fundamental, bottom-up research perspective and engage with managements on the most important issues to promote positive change, rather than passively exclude broad sectors of the market. ESG considerations extend beyond how we invest and shape the way we run our own business.

$8.4 Billion

AUM with ESG integrated in bottom-up investment process

4+ Decades

Engaging with companies to drive better outcomes

>2,200

Company meetings in last two years

99%

Companies directly engaged on ESG issues in last two years

Southeastern was founded on our guiding principles that ensure we are aligned with our long-term, likeminded clients. Our Founder Mason Hawkins structured the business to ensure that we strive to do the right thing for the right reasons – for our clients, our employees and our community. Therefore, ESG considerations have long been engrained in the ethos of our firm.

Ross Glotzbach, CFA

CEO & Head of Research

Our ESG Committee

The ESG Committee oversees the incorporation of ESG matters into our investment process, client engagement and day-to-day business operations.

The ESG Committee is chaired by our Head of Client Relations and Communications and includes our Manager of ESG Integration and Reporting, as well as senior representation from our Research, Client Relations, Legal and Finance/Human Resources teams. The ESG Committee is involved in ongoing oversight of the incorporation of ESG matters into our investment process and client reporting, as well as our day-to-day business operations. The committee also works with our Operations/Human Resources teams to help review and integrate Diversity, Equity and Inclusion (DEI) reporting, policies and training. The committee meets at least quarterly, with much more frequent direct communication informally as needed. The Committee Chair reports directly to our CEO and Head of Research, Ross Glotzbach, on progress on a weekly basis.

Our ESG Committee Members

Gwin
G. Myerberg

Global Head of Client Relations and Communications,
Chair of ESG Committee, Principal

More about me

Ms. Myerberg joined Southeastern in 2008 and oversees our global client relations and communications efforts. Based in our London office, she is a member of Southeastern's Executive Committee, chairs the ESG Committee and serves as CEO and a board member of Southeastern Asset Management International (UK) Limited. She served as Chairman of the Board for the Longleaf Management Company (Ireland) Limited for seven years. Previously, Ms. Myerberg was Manager of Investor Relations at Thales Fund Management in New York, NY and prior to that was Manager of Investor Relations at Twinfields Capital Management in Greenwich, CT. Ms. Myerberg holds a bachelor’s degree in Finance and Marketing from the McIntire School of Commerce at the University of Virginia. She completed the Cambridge Institute for Sustainability Leadership Business Sustainability Management course in 2020.

18
2008
London
BA (Finance and Marketing)
University of Virginia

Brian
Bolton

Client Service Support Manager, ESG Integration & Reporting

More about me

Mr. Bolton joined Southeastern in 2011. He serves as a Manager on the Client Service Support team and is responsible for environmental, social and governance (ESG) integration and reporting. Prior to joining the company, he spent two years as an auditor at Watkins Uiberall in Memphis and three years as an auditor and consultant with Ernst & Young in Memphis and Charlotte. He received his Bachelor of Science in Accounting from Auburn University and a master’s in Business Administration from University of Memphis. He holds his CFA Level 4 Certificate in ESG Investing.

16
2011
Memphis
BS (Accounting)
Auburn University
MBA
University of Memphis

Brandon
Arrindell, CFA

Portfolio Manager, Principal

More about me

Brandon Arrindell, CFA is a senior analyst and Principal at Southeastern Asset Management, and the CEO and Portfolio Manager of Greenwood Pine Partners. Brandon graduated from Harvard College with a degree in economics and is a CFA charterholder. He is a member of the Board of Directors of Ubiquiti Inc. and serves on the board of multiple Memphis-area non-profit organizations including The Collective Blueprint, BRIDGES, and REACH Memphis.

14
2010
Memphis
BA (Economics)
Harvard College

Julio
Utrera, CFA

Analyst

More about me

Mr. Utrera joined Southeastern's London Office as an Analyst in 2021. He has 9 years of investment experience and previously held investment research roles in T. Rowe Price International Equities and AnaCap Financial Partners. Prior to that, he was an M&A Analyst at J.P. Morgan's Investment Banking division in London. Mr. Utrera received his bachelor's degree in Business Administration and Finance from C.U.N.E.F University and a master's degree in Value Investing from OMMA Business School. He holds his CFA Level 4 Certificate in ESG Investing.

9
2021
London
BS (Business Administration and Finance)
C.U.N.E.F. University
Masters (Value Investing)
OMMA Business School

Alicia
Cardale

Analyst

More about me

Ms. Cardale joined Southeastern’s London Office in 2019. She began her career at NewRiver REIT and has 6 years investment experience. She received a Bachelor of Science degree in Geography from the University of Bristol and a Masters degree in Real Estate Investment and Finance from the University of Reading.

6
2019
London
BS (Geography)
University of Bristol
Masters (Real Estate Investment and Finance)
University of Reading

Jessica
Pressgrove

Chief Financial Officer, Principal

More about me

Ms. Pressgrove joined Southeastern in 2015. She spent 5 years with KPMG in the audit and assurance practice and then an additional 5 years with regional financial services firms based in Memphis. Ms. Pressgrove holds both a bachelor’s and master’s in Accounting from the University of Mississippi and is a Certified Public Accountant.

12
2015
Memphis
BS (Accounting)
University of Mississippi
MS (Accounting)
University of Mississippi

Sarah
Lohrey

Client Relations Director

More about me

Based in Los Angeles, Ms. Lohrey joined Southeastern in 2017. Prior to joining the company, Ms. Lohrey was the head of marketing and investor relations for The Cypress Funds LLC in Los Angeles for just over a year. Before Cypress, she was at Valiant Capital Management in San Francisco for seven years, where she worked as a research associate for three years and as an investor relations and marketing professional for four. Prior to that, Sarah worked in client service roles at Morgan Stanley and Fisher Investments. Ms. Lohrey received a Bachelor of Business Administration in Finance and Marketing from Ohio University.

17
2017
Los Angeles
BBA (Finance and Marketing)
Ohio University

Andrew
R. McCarroll

General Counsel, Principal

More about me

Mr. McCarroll joined Southeastern in 1998 and serves as General Counsel and as a member of Southeastern’s Executive Committee. Prior to that, he spent several years practicing corporate and securities law at a Nashville law firm. Mr. McCarroll obtained a bachelor’s in English and a JD degree from Vanderbilt University and a master’s in Religious Studies from The University of Chicago.

26
1998
Memphis
BA (English)
Vanderbilt University
MA
University of Chicago
JD
Vanderbilt Law School

Assessing ESG at Our Businesses

Our global research team is responsible for assessing ESG factors from a bottom-up perspective for every company we own or consider. We pull from multiple sources to determine the most critical issues at each company and to identify any opportunities to help drive positive change.

People Business Price

We look to partner with properly incentivized management teams and boards of directors that think and act like owners and are growing value per share through intelligent capital allocation.

We own high quality companies with sustainable competitive advantages, strong balance sheets and expected long-term free cash flow growth.

We buy businesses trading at 60% or less than our conservative estimate of a company’s intrinsic value, calculated using present value of free cash flow, net asset value and/or comparable business sales.

Analysts include a dedicated section on ESG analysis in all research reports. This analysis details how each company rates on ESG factors, including how the reality compares to the market’s perception of these issues, as well as areas where we might seek to engage with management to improve ESG causes. We use MSCI ESG Rating as a third-party data provider to help quantify ESG-specific metrics. While we will never outsource research on a topic this important, we have found this to be a useful supplement to our in-house, bottom-up analysis that draws upon our extensive global resources and network to gain a more comprehensive picture. MSCI ESG ratings are a helpful starting point for deeper engagement with some of our companies on how they can improve their relevant practices. In our experience, most ratings agencies take a necessarily formulaic approach to determine a rating, but this often does not allow for a nuanced understanding of a company’s true efforts. We do our own bottom-up analysis and use our network and access to engage with the ratings agencies, ISS and management, boards, ESG and corporate communications professionals at our portfolio companies to understand the perceived issues and encourage improved reporting and ratings agency engagement.

ESG Engagement

Southeastern approaches every investment with a business-owner mindset, and we believe it is our fiduciary duty to encourage responsible corporate governance by always keeping an engaged dialogue with our management teams and boards of directors.

We constructively engage with our management partners to help drive successful, long-term outcomes, using our global network, size, reputation and expertise. We tailor our engagement based on our on-the-ground experience and understanding of what factors are most important to each business and what approach is most effective in each region. Engagement efforts on ESG issues span a broad range of topics, including: adopting standardized climate-related reporting, committing to long-term carbon neutrality and setting near-term goals along the way, curbing and/or offsetting emissions, adopting cleaner energy practices, reducing water usage and other waste, sourcing sustainable and ethical raw materials, encouraging ethical industry pricing standards, creating ESG bonds, improving management and board diversity, vetting supply chain for ethical and/or modern day slavery concerns, taking actionable steps to foster an inclusive culture, aligning management properly through compensation, encouraging value-additive capital allocation, addressing dual-share structures that disadvantage minority shareholders, engaging with ratings agencies and adopting clear reporting on policies on ESG topics and many more. Our engagement on environmental and social issues roughly doubled from 2020 to 2021, as we increased our direct engagement on carbon reporting and mitigation and diversity, equity and inclusion matters.

For more information on our engagement, see Our Approach

2021 Engagement Activity

In 2021, we invested in 83 companies

Americas >300 Meetings 36 Investments Europe >350 Meetings 19 Investments Asia >500 Meetings 28 Investments

Engagement Breakdown by Topic

73%

Environmental

67%

Social

99%

Governance

>

Climate Change

The impact of climate change is being felt across the world, with overwhelming scientific evidence that greenhouse gases (GHGs) released as a result of human activity are causing global temperatures to rise, creating complex challenges for businesses, governments and individuals.

We believe that climate change presents financial risk to the global economy and recognize that the physical and transition risks associated with climate change, as well as the opportunities that go along with them, will affect the companies in our investible universe in different ways. We consider the material risks and opportunities for climate change as one of many inputs in our bottom-up, fundamental analysis of each individual company. We recognize the importance of resource companies that can act as a bridge to cleaner energy, while also factoring in the reality of top-down geopolitical factors in the energy space. We closely monitor, engage and report on the carbon footprint of our portfolios, using several different metrics, including carbon footprint (total GHG emissions), emissions intensity (GHG emissions per unit of revenue) and scope of reporting by the company. We additionally report on our level of engagement with top portfolio holdings, including our assessment of the company’s current positioning and progress over time.

For more information:

Partnerships

We are signatories to the United Nations-supported Principles for Responsible Investing (PRI), as well as to Climate Action 100+ (CA100) and supporters of the Task Force on Climate-Related Financial Disclosure (TCFD).

We are a signatory to the United Nations-supported Principles for Responsible Investment (UNPRI), a leading global network for investors who are committed to integrating ESG considerations into their investment practices and ownership policies. We are a signatory to Climate Action 100+, an investor-led initiative that is supported by PRI and focused on actively engaging with management teams that are in a position to help drive change. We are also a supporter of Task Force on Climate-Related Financial Disclosures (TCFD), an initiative created by the Financial Stability Board to improve and increase reporting of climate-related financial information. We support all three organizations’ commitment to improving governance, strengthening transparency and disclosure and advancing positive long-term change.

Proxy Voting

We have a formal proxy voting policy that is designed to ensure that Southeastern votes all securities in the best long-term interest of clients.

2021 Proxy Voting Stats


In 2021, we voted on 1,022 agenda items across 75 meetings from 21 different countries. We supported:

46%

SHAREHOLDER PROPOSALS

94%

MANAGEMENT PROPOSALS

We vote proxies where we are given client discretion to do so. We do not rely upon management guidance and/or a proxy service consultant to determine how we will vote. Rather, we review each individual proxy on a case-by-case basis and make our own determination. Our Manager of ESG Integration and Reporting and ESG Committee Chair review each proxy for potential ESG considerations for each vote and share additional analysis with the research team to consider. We sometimes engage with proxy service consultants to encourage them to propose that shareholders vote in what we believe to be the most productive manner for the long-term shareholder value and sustainability of the business. We vote our proxies in support of strong and shareholder-friendly corporate governance agenda items that we believe will help each company create and realize long-term sustainable value for shareholders.

 

For more information:

Proxy Voting Policy

Supporting Our Environment

We are working to reduce our impact on the environment, starting by supporting positive change in our local community.

Longleaf pine – a tree native to the southeastern United States and the namesake for the Longleaf Funds – is important to the legacy of our firm and founders. Longleaf pine’s impact goes well beyond the value of its timber. The trees support a vast ecosystem of hundreds of plant and animal species. Southeastern supports efforts to re-forest longleaf pines, which have been endangered due to overcutting. The longleaf pine in our lobby, hundreds of years old, was reclaimed from riverbeds where the logs sank while being transported to mills decades ago.

Click the links to learn more about longleaf conservation at The Longleaf Alliance and Tall Timbers.

Experience

Joined

Location

Education