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.
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.
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