Responsible investing is an investment strategy that incorporates screening companies for how effectively they manage Environmental, Social and Governance (ESG) issues. We believe that companies with strong ESG practices create value, while those that do it poorly have the potential to destroy it.
To incorporate responsible investing into our practice we use the following:
- Sustainalytics, an independent research firm that evaluates the ESG performance of securities
- Negative screening (common screens include; gambling, tobacco, weapons etc.)
- Managers with active engagement and impact investing mandates. These managers actively engage the companies they invest in through exercising their shareholder voting rights and participating in investor led initiatives to promote change.
I am in Montreal attending the RiA Conference on Responsible Investing this week (seems fitting for Earth Week). This link takes you to the line-up of speakers at the conference and a preview of the agenda. I look forward to coming back with fresh ideas and insight! #RIACon19