Environmental, Social and Governance (ESG)

Our Policy

 

We believe that responsible investment practices which incorporate the consideration of environmental, social, and governance (ESG) topics add sustainable value for our investors and are consistent with our fiduciary duty.

Market Review: Hiking in a Bear Market
Q3 2022 Market Review

Our Philosophy 

 

Our investment strategy is driven by the belief that:

 

Long-term sustainable and successful businesses incorporate and manage all relevant factors whether they be economic, financial, operational, environmental, social, or governance related.


Where material to a particular investment opportunity and consistent with a strategy’s investment goals and objectives, we seek to consider environmental, social, and/or governance factors that we believe may influence risks and rewards as an element of our investment research and decision-making processes.


However, such environmental, social, and/or governance factors are not by themselves determinative to an investment decision.

Our Experience
Natural alignment with our quality-focused investment approach that has been implemented since 1989
PRI Signatory Since 2019

ESG research is conducted by each member of the investment team


Five key issues identified that we believe are the most material and financially relevant for each sector


These five key issues are largely informed by SASB

We analyze each of these key issues and assign each one an A, B, or C rating

 

A Rating

Demonstrates leadership within ESG

 

B Rating

Demonstrates neither leading the charge nor doing something egregious

 

C Rating

Demonstrates one or more ESG issues of significant concern

The rating on the key issues informs the overall company rating


Rating updated annually or more frequently if a material event should occur

Where material to a particular investment opportunity and consistent with KAR’s investment strategy, KAR seeks to consider environmental, social, and/or governance (“ESG”) factors that KAR believes may influence risks and rewards as an element of its investment research and decision-making processes. However, such ESG factors are not by themselves determinative to an investment decision.