What is Sustainable Investing?
Sustainable Investing is the full integration of environmental, social and governance (ESG) factors into investment analysis and decision making. It seeks to deliver superior long-term investment performance by integrating traditional financial analysis with rigorous ESG analysis. By identifying companies around the world that are leaders in the development of sustainable business practices, Sustainable Investing offers investors the opportunity to capture the investment returns associated with companies with sustainable business models.
Among the reasons we believe Sustainable Investing is a better, smarter way to invest are these:
- Companies with stronger environmental performance often carry less risk, achieve greater efficiencies and are better positioned to take advantage of opportunities in a global marketplace where environmental issues increasingly matter.
- Companies with strong employee relations and workplace practices often enjoy higher productivity, higher morale, lower turnover and absenteeism, and are therefore better positioned for growth than their less enlightened competitors.
- Companies with better corporate governance practices may be less likely to have “blow-ups” or other surprises, financial or otherwise.
There was a time when sustainability concerns were viewed with indifference or even resistance by many companies as a potentially costly distraction. Today, growing numbers of companies recognize the unprecedented strategic, financial and competitive advantages associated with superior sustainability performance.
The purpose of Sustainable Investing is to take advantage of this seismic shift – to capture the investment returns associated with superior sustainability performance.
With global political, social, environmental and financial agendas all increasingly attuned to the importance of sustainability, we believe Sustainable Investing is an investment methodology that is uniquely attuned to the times we live in.
