Environmental, Social, Governance (ESG) Integration

Effective November 2017, CRM signed onto the United Nation’s Principles of Responsible Investing. We believe ESG factors can have a material impact on a company’s valuation, financial performance, and related risk/return.  We pursue an active investment style by engaging in ongoing dialog with the companies in which we invest, including material ESG issues.

As part of our approach to ESG integration, investment analysts analyze ESG metrics of the companies we consider for investment.  Investment analysts evaluate, integrate, and document relevant ESG factors into their due diligence and investment theses.  Analysts and portfolio managers review third party ESG data (i.e. MSCI, Bloomberg, ISS) and assess potential risks or opportunities.  We believe the inclusion of this type of analysis enhances our research process.  While portfolio managers are unconstrained with regards to purchasing or holding a position solely due to an ESG factor or rating, consideration of these issues is generally a part of every investment decision.

Examples of relevant ESG considerations: