Imagine standing on the threshold of having to invest in a company. To make sure you’ve chosen the right investment, you can take a closer look at the key figures, i.e. the company’s future growth potential. And if you’re really thorough, you might choose to analyse potential risks from an ESG angle. ESG stands for Environmental, Social and Governance.
ESG issues are an increasing source of risk and opportunity, and therefore we seek to integrate these issues into our investment analysis. Our processes include ESG data as one of the factors used in assessing investments. We believe this will improve risk management and thereby risk-adjusted returns.
As part of our ESG analysis efforts we continuously assess and evaluate transformative themes and areas, which we believe shape the future landscape of investments. Social and technology change as well as climate change and other environmental issues impact business models.
The ESG research methodology on company level is a combination of two distinctive approaches. First, companies are assessed based on if they conduct their business responsibly in relation to their stakeholders – employees, suppliers, customers, investors, the environment or society at large. Second, we assess whether companies position their products or services well in relation to broader sustainability megatrends such as climate change or changing demographics.
We underpin our approach with externally sourced ESG research and ratings. This provides coverage of over 4,000 companies globally both in terms of their practices and tracking controversial issues.
With our integrated approach, our clients will have the added benefits of increased transparency and a better understanding of how their money is invested.
Our responsible investment team is an integral part of our investment team and works with the fund managers and analysts to help integrate material ESG analysis into our investment approach and across portfolios.
Our research department includes both financial and ESG analysts and company assessments are shared between fund managers as well as financial and ESG analysts. All company analysis should include ESG assessment from the internal ESG team or from external sources.
Our Stars funds
As part of our ambition, we have created a family of investment funds under the Stars brand. The Stars funds are about positive selection and selecting quality companies with well-managed ESG profiles. All investments in our Stars funds undergo a thorough financial analysis and a proprietary in-house ESG analysis. We offer client-specific solutions based on in-house capabilities on ESG analysis, on engagement as well as external sources for screening.