Defining the approach
ESG integration incorporates environmental, social and governance (ESG) factors into investment due diligence and analysis. The principal objective of this approach is to ensure that relevant ESG issues, factors and risks that may impact companies are considered alongside traditional financial analysis.
Unlike other approaches to sustainable investing, ESG integration proactively assesses financial risks and opportunities, offering investors an opportunity to allocate capital in line with their values and invest in companies that have responsible and/or dedicated ESG practices.
Investors can approach ESG integration in a variety of ways. To help align your portfolio with your environmental, social and governance values, we offer:
- Mutual funds
- Separately managed accounts
Case Study: Testing the waters*
The clients wanted their relatively small portfolio to align with their new ESG awareness, particularly in the area of fossil fuels.
PORTFOLIO GOALS: Since their portfolio objective was centered on maintaining wealth, one partner had reservations about whether a sustainable investing approach could meet their performance goals.
OUR APPROACH: Initial investments were made in passive U.S. and international equities strategies. Once both partners were comfortable with performance results, they expanded their sustainable investments to include fixed income and additional equity strategies.
*All case studies are shown for illustrative purposes only and should not be relied upon as advice or interpreted as recommendations. They are based on current market conditions that constitute our judgment and are subject to change. Results shown are not meant to be representative of actual results. Past performance is not a guarantee of the future performance of an investment.