How We Incorporate Socially Responsible Investing
Responsible Investing is taking center stage with Canadian Investors and we think it is for good reason. The time has come to align our investment choices with our values and goals. This may mean focusing on the impact of our funds, supporting companies with strong environmental or social governance records and making choices accordingly.
Investment strategies incorporating both financial and non-financial factors that can generate value fall largely into 4 categories: Socially Responsible, ESG Integration, Impact Investing and Theme Based Sustainable Investing. Click here for more information
investor conviction has grown, so too has the breadth and depth of the research available to help us with these choices. Every portfolio has environmental and social risk and we are often asked if we, as Portfolios Managers, consider these factors. And the answer is “We Do!”
Environmental, Social and Governance covers the broadest array of responsible investment concerns and forms the backbone of our commitment to sustainable investing. In practical terms, each of the companies held in our portfolio are put through a “screener” and assigned a score and a risk rating. To accomplish this, we obtain third party research from a company called Sustainalytics. They maintain and update an extensive data base both here in Canada and the United States. We are regularly updated on changes within the corporation that could affect their risk rating in any one of the areas. In the event of a rating change or concerning trend, the Investment Committee looks to replace the shares with a more suitable option. Evidence shows that companies that score well by ESG standards tend to be more profitable in the long term. We consider this a win-win for the environment, innovation and the health of our portfolios.