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Integrated ESG Investing


Our rigorous research process draws upon information from both traditional and unconventional sources to form a holistic understanding of corporate performance. We integrate comprehensive ESG criteria with financial research to identify sustainable companies that possess long-term drivers of success:

  • Visionary management teams with the potential to capitalize on new market opportunities and revenue streams.
  • Productivity and efficiency improvements capable of supporting higher profit margins.
  • The avoidance of unanticipated costs stemming from inadequate attention to ESG risks.
  • As a result, relative to market benchmarks, our process seeks to enhance portfolio quality, return potential, and risk reduction over the long-term.

We integrate ESG factors at every stage of our research and investment process: in the definition of the investable universe, through ruling out companies with the worst records; in the stock selection phase through detailed company research identifying leaders and laggards; and in the portfolio construction stage where our goal is to raise the portfolio’s ESG profiles.

Quantitative

 

We establish the initial investment universe, drawn from the equity universe, based on market capitalization, financial quality criteria, and ESG quality criteria by sector. Our screens exclude companies that have consistently lost money, taken on unsustainable levels of debt, or experienced such volatile operating performance that we would not be confident in projections about their future profitability.

Fundamental

Portfolio Construction