On November 15, 2022, Davis published our 2022 Environmental, Social and Governance Report. Within the report, we updated our investors and stakeholders on the firm’s Environmental, Social and Governance (ESG) program and our progress against the objectives to which we committed ourselves in our inaugural Environmental, Social and Governance Report. The 2022 report covered calendar year 2021 environmental data, which was the most current available at the time, as well as 2022 year-to-date accomplishments for both social and governance.

Within this 2023 Environmental, Social and Governance Report, we detail our calendar year 2022 environmental data in an effort to implement more-timely ESG reporting and to align our ESG reporting with the balance of our fund-level reporting, which occurs on a calendar year basis. We also detail our interim progress since November 2022 on social and governance initiatives. We anticipate publishing our next full-length ESG report in Q1 2024, covering calendar year 2023 progress across the full spectrum of ESG.

As the economy faces its strongest headwinds in more than a decade, Davis continues to believe in the value of maintaining ESG as an important component of our investment philosophy. National and local governments, from European capitals to Washington to our home city of Boston, have only deepened their commitment to ESG. Increasingly, governments view the private sector as partners in ESG and look to companies for leadership. We’ve also heard from a broad spectrum of our investor base, ranging from the largest institutions all the way to individuals and families, that you value the proposition of doing well by doing good. As a responsible corporate citizen, and as a prudent steward of our investors’ capital, we not only value our stakeholders’ input – we see opportunity. By institutionalizing the consideration of ESG factors within our investment decisions, we can position ourselves ahead of the curve and employ ESG to our competitive advantage. Moreover, improving our ESG program also has the benefit of being the right thing to do, irrespective of investment returns. We are confident that we can have it both ways: considering ESG factors in our investment decisions while continuing to deliver the strong risk-adjusted returns that have benefited our investors for nearly 50 years.