According to the United Nations Principles for Responsible Investment, launched in 2006 (UN PRI,) "Responsible investment is an approach to investing that aims to incorporate Environmental, Social and Governance (ESG) factors into investment decisions, to better manage risk and generate sustainable, long-term returns." You don't have to sacrifice investment success to support socially responsible companies!
Environment, Social, and Corporate Governance issues can provide insight into both risks and opportunities for industries, sectors and specific stocks.
We employ traditional financial analysis, looking at time tested metrics that help us understand the financial health of companies.
The extra layer of due diligence results in a robust portfolio that meets the challenges of our rapidly changing world without sacrificing performance.
Financial analysis examines various elements that affect stock prices, for example, sales, price to earnings (P/E) ratio, profits, earnings per share (EPS), dividends, as well as economic and industry specific factors. This is one way of determining the financial health of a company and gives you an idea of the value of its stock.
ESG (Environmental, Social and Governance) factors can highlight both risks and opportunities in an investment thesis. Advisors and Portfolio Managers at Mackie Research Capital Corporation who are interested in Responsible Investing may use ESG analysis to supplement financial analysis in a variety of ways. These may include risk assessment and mitigation, negative screening (screening out) of industries that may be considered harmful to society and/or positive screening (actively searching for and adding) companies having best of sector ESG performance or with exceptional ESG metrics.
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