Many of our clients want to drive positive change in the world, by investing in innovative companies and strategies. Of course they also want to generate financial returns. That’s why we created our forward-looking Environmental, Social and Governance (ESG) portfolio.
With ESG investing, we pay close attention to factors like sustainability, corporate transparency, equity, environmental impact, diversity and inclusion. Where many firms simply exclude companies that violate ESG principles, we go further. We doggedly seek out opportunities for you to participate in high-impact, fast-growing segments of the world economy.
Here’s more of what you can expect from ESG.
As the world changes at warp speed, applying ESG principles can help you protect against new and future investment risks. It can also help you identify emerging economic trends and enhance long-term returns.
A company that looks attractive using traditional analysis may look riskier when viewed through our ESG lens. Maybe they have an out-sized environmental footprint, or substandard privacy protections. These new factors can reduce their value in the eyes of the public, and in an investor’s portfolio.
Socially conscious investing has been around for decades, but it’s grown rapidly in recent years. In 2018, sustainable assets accounted for $11.6 trillion of global assets under management.1 In 2019, 75 percent of retail and institutional investors applied ESG principles to at least a quarter of their portfolios.2 A new age of responsible investing is here.
In reality, ESG may give you the best of both worlds. Roughly 68 percent of asset managers say ESG integration significantly improves their returns. A full 77 percent say they believe ESG factors play a role in a company’s broader financial performance.3 Strategic ESG investing allows you to invest in your personal values. It also plugs you into exciting economic opportunities around the world.
Our Westmount ESG managers align with the United Nations Sustainable Development Goals, a global framework adopted by the U.N. General Assembly. The U.N.’s objective is to guide investment that addresses humanity’s most pressing issues — poverty, inequality, climate change, environmental degradation, peace and justice. You can be a vital contributor.
With ESG, financial performance is only part of the equation. As a socially conscious investor, you also want to know about the real-world impact your investments are making. Every quarter, we recap the most inspiring stories from across the portfolio. You can see the latest update here.