ESG and investing sustainably
11 October 2019
Greater numbers of people are now choosing to invest their money in a more ‘sustainable’ way.
But with a confusing range of investment titles and names out there – from so-called impact strategies to socially responsible investing – understanding ‘sustainability’ can be hard to fathom.
For us, it means finding companies that have a genuinely long-term focus – both in terms of their financial operations, and in terms of their impact on wider stakeholders.
how a company treats its people, customers and other stakeholders often gives a good proxy for long-term business success.
To do this we integrate environmental, social and governance (ESG) analysis into every part of our investment process.
For example, knowing how a company identifies and manages issues such as climate change, water usage and energy efficiency helps us to understand how it prepares for environmental challenges to its business model.
Likewise, how a company treats its people, customers and other stakeholders often gives a good proxy for long-term business success.
Finally, we value clear and accountable governance structures. As such, we pay considerable attention to the extent to which a company demonstrates alignment with the interests of long-term investors.
ESG analysis therefore helps us identify the ‘non-financial’, or more accurately, the ‘not-yet-financial’ factors that could impact businesses – a crucial guide for investing sustainably.
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Information correct at time of publication. This information is issued and approved by Martin Currie Investment Management Limited. The opinions contained in this article are those of the named manager. They may not necessarily represent the views of other Martin Currie managers, strategies or funds. Market and currency movements may cause the capital value of shares, and the income from them, to fall as well as rise and you may get back less than you invested.