By evaluating companies on the basis of environmental, social and governance (ESG) criteria, we derive added insight into factors that we believe can influence the performance of their stocks either positively or negatively.

Environmental factors
Impacts on performance
  • Resource management
  • Climate change
  • Emissions reduction
  • Environmental reporting/disclosure
  • Minimize environmental liabilities
  • Lower costs/increase profitability through energy and other efficiencies
  • Attentive to regulatory/reputational risk
Social factors
Impacts on performance
  • Workplace
    • Diversity
    • Health and safety
    • Labor relations
  • Product Integrity
    • Safety
    • Product quality
  • Community Impact
    • Community relations
    • Philanthropy
  • Workplace
    • Improved productivity/morale
    • Reduce turnover/absenteeism
    • Openness to new ideas and innovation
  • Product Integrity
    • Create brand loyalty
    • Improve product safety/excellence
  • Community Impact
    • Improve brand loyalty
    • Protect license to operate
Governance factors
Impacts on performance
  • Executive compensation
  • Reporting and disclosure
  • Board structure/accountability
  • Align interests of shareowners/management
  • Avoid negative financial surprises
  • Avoid reputational risk