Sustainable Investing
Philosophy
As part of our dedication to uncover quality, growing companies, we formally integrate analysis of environmental, social and governance (ESG) factors into our investment process. We believe that companies who consider material ESG risk and opportunities in their businesses are equipped to create shareholder value with less risk over time.
Approach
Our approach seeks to exploit the information inefficiencies inherent in smaller companies to add value and enhance portfolio quality. Through original research and engaging management teams, we believe we can “fill the gap” to gain a more comprehensive view of sustainability for each company. Guided by the framework of the Sustainability Accounting Standards Board (SASB), our proprietary Sustainability Assessment looks beyond third-party ratings with original analysis that focuses on financial materiality. We seek to identify smaller companies making improvements in their sustainability initiatives, which we believe can be a powerful dynamic that can have positive consequences over time.
ESG Cornerstones
Original Research
Our approach seeks to exploit the information inefficiencies inherent in smaller companies to add value and enhance portfolio quality. Through original research and engaging management teams, we believe we can “fill the gap” to gain a more comprehensive view of sustainability for each company. Guided by the framework of the Sustainability Accounting Standards Board (SASB), our proprietary Sustainability Assessment looks beyond third-party ratings with original analysis that focuses on financial materiality. We seek to identify smaller companies making improvements in their sustainability initiatives, which we believe can be a powerful dynamic that can have positive consequences over time.
Assessing Materiality
ESG risks and opportunities can change dramatically from one company to the next in terms of financial impact. We seek to understand what the most important factors are for each company, guided by the SASB framework.
Engaging Management
Discussing sustainability issues with management teams is crucial in filling in the information gap. This allows us to learn first-hand the most important sustainability issues affecting their company and how they are addressing them, while maintaining accountability and encouraging positive behavior that aligns with our clients’ long-term interests.
Responsible Investing Affiliates
Un-backed Principles for Responsible Investment
PRI is a global network of investors working together to put the six Principles for Responsible Investment into practice. The Principles reflect the view that ESG issues can affect the performance of investment portfolios and therefore must be given appropriate consideration by investors if they are to fulfill their fiduciary (or equivalent) duty. They provide a voluntary framework by which all investors can incorporate ESG issues into their decision-making and ownership practices, and align their investment objectives with those of society at large.
To view these principles, click here.
Investor Stewardship Group
ISG is an investor-led effort that includes some of the largest U.S.-based institutional investors and global asset managers, along with several of their international counterparts. The ISG was formed as a sustained initiative to establish a framework of basic investment stewardship and corporate governance standards for U.S. institutional investor and boardroom conduct. The result is the framework for U.S. Stewardship and Governance comprising of a set of stewardship principles for institutional investors and corporate governance principles. The corporate governance framework articulates six principles that the ISG believes are fundamental to good corporate governance at U.S. listed companies.
To view these principles, click here.
ESG Advisory Committee
The purpose of our ESG Advisory Committee is to provide cross-functional support for the Firm’s on-going commitment to ESG integration into the investment investment process and oversight for collaborative engagements, reporting and research.
Committee Members include:
Jeff Dalton, Manager of Sustainable Investing
& Risk Analysis (Chair)
Andrew Hill, President & Portfolio Manager
Brian Busby, Head Trader
Shelby Riggs, Senior Associate (Vice-Chair)
Melanie Mendoza, Chief Compliance Officer
For any ESG-related inquiries, please contact us at [email protected].
