The Veris Approach

Sustainable/ESG Investing

ESG is an abbreviation for Environmental, Social, and strategic Governance business factors. ESG Investing strategies rely on these factors to identify forward thinking, well-managed companies while offering insight into the degree to which companies and their products impact our communities and the environment. When performing investment research, these factors are integrated with traditional investment analysis. Companies are increasingly using these factors to evaluate and improve their own operations, which often results in better economic performance and increased shareholder value over the long term.

 

ESG Investing is a returns-oriented strategy, that draws heavily on quantitative as well as qualitative analysis. It integrates traditional equity research with the evaluation of an extended set of environmental, social, and strategic governance metrics. For this reason, the approach is often called ESG Investing.

ESG practitioners use these extended factors, not for environmental or social advocacy purposes per se, but as proxies for long-term business performance, management quality, and competitive advantage. ESG places top priority on mitigating risk and identifying superior investment value.

A growing number of investors and corporate leaders argue that the pace of global development, climate change, resource depletion, pandemics, and geo-political instability offer ample evidence as to the materiality of ESG factors in business and investing performance. Failing to recognize this is to turn a blind eye to potentially significant business risk while foregoing potentially significant financial opportunities.

To learn more:
Investing in a Sustainable World, by Matthew J. Kiernan Ph.D.
United Nations Principles for Responsible Investing
Environmental, Social, and Governance Investing white paper by BSR