Our purpose is to generate long-term investment returns for shareholders.

To do this, we seek out businesses that solve problems rather than exacerbate them. These companies don’t just help build a better world; they are more likely to be valuable. And we support them to do this not over quarters but many years. This makes our investment process inextricably linked to sustainability.

This has long been our approach at Scottish Mortgage. We stopped investing in fossil fuel companies many years ago, before environmental, social and governance (ESG) goals were fashionable.

But to be clear, ESG has never been the starting point in our investment process. It’s merely a by-product in our pursuit of long-term returns. In fact, the industry’s obsession with superficial metrics is not just unhelpful but potentially damaging. An absurd example is Tesla’s banishment from an ESG index, only to be replaced by an oil refiner.

Our approach has more real-world impact than most. We don’t just trade shares on the stock market. We also invest in private companies. Providing primary capital that is actually used to develop and grow businesses. This is real impact. And we do this at significant scale giving us greater influence. Not just with private companies but public ones too.

So why are we doing this? Simple. We provide your capital to entrepreneurs to help them build the future of the economy. We invest in progress, not the status quo. In doing so, we think we’re far more likely to deliver strong long-term returns for our shareholders.