Responsible Investing is a marriage between traditional financial returns and positive environmental, social and governance (ESG) performance. This means investing in leading for-profit companies that are creating significant positive social and environmental impact.
One such company is Go-Ahead, a core holding in the Genus Fossil Free Impact Equity Fund. Go-Ahead is the UK’s busiest public bus and rail operator. They employ 26,000 people and transport three million passengers per day. Go-Ahead recently achieved a four star rating and an impressive 96% score from the Corporate Responsibility Index, a rigorous annual benchmark of responsible business.
By providing efficient public transportation, they reduce road congestion, cut carbon emissions and improve air quality, while supporting local communities. Go-Ahead’s commitment to social and environmental responsibility has won them the triple Carbon Trust Standard for reductions in carbon, water and waste.
“We recognize the importance of transparency and accountability in our sustainability reporting.” – Sarah Boundy, Corporate Communications Director, Go-Ahead
The Corporate Responsibility Index praised Go-Ahead for developing and implementing a means to attribute financial value to their sustainability efforts, as well as for its transparency and overall quality of reporting.
The outlook is bright. Go-Ahead is in a good financial position with strong cash generation, a robust balance sheet, and a progressive dividend policy, giving them the flexibility to seek further value-adding opportunities.
Go-Ahead is an excellent example of how companies are increasingly integrating responsible business practice into all aspects of their business, with responsible values at their core. This is what responsible investing screens for: future-oriented sustainability and positive ESG practices.
Photo courtesy of Go-Ahead.