Our ESG Investment Process
The ESG Team's mantra of "making money while making a difference" is guided by a firm belief that companies integrating the best environmental social and governance (ESG) practices will provide higher risk-adjusted returns to shareholders and contribute to the creation of long-term sustainable value for all stakeholders. Our proprietary ESG process consists of:
Financial Analysis: Our independent portfolio managers begin by assessing companies through traditional financial analysis to identify the best investment opportunities.
ESG Analysis: Our proprietary evaluation process adds an extra layer of due diligence, identifying often overlooked risks.
Identify sector-specific material ESG risks to establish baseline expectations for companies.
Exclude companies involved in activities that are not consistent with accepted norms and values (tobacco, nuclear) or that violate international treaties (weapons banned under international humanitarian law).
Evaluate every company to ensure that it satisfies our baseline expectations.
Portfolio Construction: We build our portfolios with companies that fulfill both financial and ESG objectives.
Monitoring and Investigation: We continuously monitor all portfolio companies for headline risk. If a company has potentially committed a significant transgression of management ethics or responsible practices, we conduct a management breach investigation and take appropriate action.
Corporate Engagement: As shareholders, we then actively engage with many of the companies held in our funds to improve their ESG practices through dialogue, shareholder resolutions and proxy voting.