Sustainable investing

We believe achieving our clients’ goals requires integrating sustainable research and engagement practices across our sustainable investment management platform.

FINANCIAL AND SOCIAL VALUE OF INVESTING SUSTAINABLY

We believe companies committed to sustainability and positive environmental, social, and governance (ESG) can increase in value and develop strategic advantages over time.

Wendy Cromwell, CFA, Head of Sustainable Investment

Active management may uncover market inefficiencies

Short-termism

Investors often focus on near-term metrics like quarterly earnings rather than sustainable growth. We believe longer holding periods plus high active share may yield better results.

Inefficient ESG ratings

Most third-party ESG data is backward-looking. Vendors also emphasize different ESG issues, so their findings are inconsistent.

Flawed emerging markets indices

Traditional EM benchmarks are often skewed toward sectors and industries that represent historical growth drivers, potentially failing to capture future return opportunities.

Insufficient climate-risk analysis

Markets tend to focus on climate transition risks like regulation or litigation. We believe an understanding of how physical climate risks affect investment values is also critical.

Undefined impact and climate investing universes

Misperceptions of impact investments stem from limited analyst coverage, new or specialized products, unconventional business models, and a wide range of potential outcomes. Climate-related investments are underappreciated due to widespread misunderstanding of both climate risks and the growing demand for solutions that help society adapt to and mitigate the effects of climate change.

SUSTAINABLE INVESTMENT SOLUTIONS CAN MEET MANY OBJECTIVES

Our investment approaches are actively managed and designed to address a range of investment goals. They share a common objective: To deliver competitive returns for our clients. All of our sustainable approaches consider ESG issues before investing in a company.

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