ESG stands for Environmental, Social and Governance. There is now substantial evidence to suggest that ESG factors, when integrated into classical investment analysis and decision making processes, offer investors genuine long-term performance advantages.
ESG has become a shorthand for investment methodologies that embrace ESG or sustainability factors as a means of helping to identify companies with both superior business models and business processes.
Including ESG factors in the investment process gives portfolio managers added insight into the quality of a company's management, its culture, its risk profile and other characteristics.
By taking advantage of the increased level of scrutiny associated with our proprietary ESG analysis, we believe that ESG can be used to identify companies that:
• Are leaders in their industries
• Are better managed and are more forward-thinking
• Are better at anticipating and mitigating risk
• Meet positive standards of corporate responsibility
• Are focused on long term success.
