ENGAGING VOLEX ON E.S.T. PERFORMANCE
As part of our ongoing efforts to improve performance across key environmental, social, transparency and governance (E.S.T.) metrics, we recently engaged with Volex, a manufacturer of electrical power cabling serving the automotive, medical and consumer electronics sectors.
This meeting formed part of our metrics engagement programme, which targets companies scoring seven or below on the Impact Cubed platform, in hopes of improving their scores. Impact Cubed benchmarks performance across fourteen E.S.T. metrics, enabling us to assess how companies compare with their industry peers on issues carbon, waste, water use and board diversity.
We were encouraged to see that Volex’s most recent reporting showed notable improvements in disclosure across several E.S.T. metrics.
Ahead of the meeting, we were encouraged to see that Volex’s most recent reporting showed notable improvements in disclosure across several E.S.T. metrics. Our discussion focused on health and safety, scope 3 emissions, operational efficiency and waste management.
Volex explained that recent acquisitions had influenced performance in several areas. For example, one newly acquired business had previously been family run and the owners had placed little emphasis on health and safety. Initial steps included providing PPE, inspecting machinery and installing safety guards. The company’s priority was to bring health and safety up to standard, with broader E.S.T. performance improvements now becoming a focus at that site. This context helps explain the recent increases in reported waste and emissions, and highlights why direct dialogue with companies is so important – figures alone rarely tell the full story. Through engagement, we can better understand the underlying drivers of change and encourage meaningful progress.
We were particularly encouraged to learn that Volex’s carbon targets have now been validated by the Science Based Targets initiative (SBTi), a globally recognised framework for setting credible climate goals.
We were particularly encouraged to learn that Volex’s carbon targets have now been validated by the Science Based Targets initiative (SBTi), a globally recognised framework for setting credible climate goals. This validation reflects a serious commitment to reducing emissions in line with climate science and marks a positive step towards improving environmental performance.
Volex also expressed interest in engaging with us further on conflict minerals, an issue we are actively exploring with other companies in our portfolio. We welcome this openness and look forward to continuing the dialogue. You can read about our recent engagement with another investee company, ASML, on the topic of conflict minerals on page 7.
Outcome: Overall, we were encouraged by Volex’s transparency, its recognition of areas for improvement, and its willingness to act. We see this engagement as a constructive step in supporting better performance across E.S.T. metrics and will continue to monitor progress in future reporting cycles.
Written by Ffion Spencer
Information is accurate as at 03.11.2025. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.