267694 EdinburghIT AR 2024 WEB - Flipbook - Page 26
24 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC
SECTION 172 STATEMENT, COMPANY
SUSTAINABILITY AND STAKEHOLDERS
BOARD RESPONSIBILITIES
SECTION 172 STATEMENT
The responsibilities of the Board include setting the Company’s
strategic aims, providing the leadership to put them into
effect, supervising the Manager and reporting to shareholders
on their stewardship. The Board is ultimately responsible
for the direction, management, performance and long-term
sustainable success of the Company.
Section 172 of the Companies Act 2006 requires the Board to
act in the way that it consider would most likely promote the
success of the Company for the benefit of all stakeholders,
taking into consideration the interests of stakeholders in their
decision-making and to share how they have discharged this
duty. During the year under review, the Board believes that
it has acted in good faith and discharged its duties under
Section 172 of the Companies Act 2006. The fulfilment of
this duty not only helps the Company achieve its investment
objective but ensures decisions are made in a responsible
and sustainable way for shareholders.
The Board sets the Company’s strategy and objectives, taking
into account the interests of all its stakeholders. However,
the Company has no employees and no customers in the
traditional sense. Consistent with the Company’s nature as an
investment trust, the Board’s principal concern has been, and
continues to be, the interests of the Company’s shareholders
taken as a whole.
COMPANY SUSTAINABILITY AND STAKEHOLDERS
A good understanding of the Company’s stakeholders enables
the Board to consider the potential impact of strategic decisions
on each stakeholder group during the decision-making
process. By considering the Company’s purpose, vision and
values, together with its strategic priorities, the Board aims for
its decisions to be fair and take account of the interests of the
key stakeholder groups. As an externally managed investment
company, the Company does not have any employees. The
Board considers its main stakeholders to be its shareholders,
service providers and investee companies.
Section 172 statement area
The following sections include examples of how the
Company’s stakeholders were considered during the key
Board decisions. Key Board decisions include payment of
dividends, liquidity management via share issuance and share
buy-backs, marketing, performance evaluation, negotiation
on debt and re-appointment of the Manager and other key
service providers, ESG integration into investment decisions
and Board succession planning. Please see the table below
for a reference to where this information can be found:
Reference
The likely consequences of any
decision in the long-term
See Chair’s Statement on page 5, The Portfolio Manager’s Report, Core Investment
Beliefs and Business Review on pages 9 to 14. Going Concern and Viability
Statements on pages 41 and 23 and Stakeholder Engagement section below.
The interests of the Company’s
employees
As a closed-ended investment company, the Company has no employees.
Stewardship section on page 26 refers to how the Company assesses its impact on
social issues.
The need to foster the
Company’s business relationships
with suppliers, customers and
others
As a closed-ended investment company, the Company has no customers in the
traditional sense. See Stakeholder Engagement section below Principal Risks and
Uncertainties on page 21 and Stewardship section on page 26 on how the Company
assesses its impact on and engages with its key stakeholders.
The impact of the Company’s
operations on the community
and environment
See Principal Risks and Uncertainties on page 22, Stewardship section on page 26
and ESG matters disclosure below on how the Company assesses its impact on
the community and environment of its investee companies.
The desirability of the Company
maintaining a reputation for high
standards of business conduct
See Stakeholder Engagement section on page 25, Anti-Bribery and Corruption and
Modern Slavery disclosures on pages 27 and 28.
The need to act fairly as between
members of the Company
See Stakeholder Engagement section on page 25 and Corporate Governance Report
on pages 30 to 49.
