We screen out companies with poor performance on environmental, social and governance (ESG) issues. We instantly sell businesses that get involved in ESG controversies.
Why? Investors respond strongly to negative ESG news. Additionally, given the growing social demand for sustainability and transparency, the financial market focus on ESG performance is likely to expand further.
On the flip side of the coin, we invest in global companies that are recognized leaders in sustainability. Our Genus Fossil Free portfolios favour leaders in renewable energy and industries committed to mitigating climate change. We use ESG performance to identify better investment opportunities.
Why? All our investments already fall under the umbrella of responsible investing. Several studies have proven the correlation between a company’s financial performance and its commitment to good ESG practices.