桃颜蜜色视频

Skip to Con-tent

Be careful when drawing conclusions about the environmental, social, and governance (ESG) performance of investment portfolios based on ratings services. These services are proliferating for a good reason: investors are seeking guidance on how best to combine investing with social and environmental impact. But sustainability ratings, as they are known, too often suffer from information shortfalls or simplistic scoring methodologies that fail to account fully for a portfolio鈥檚 sustainability objectives.

For example, our US Small Cap strategy would have earned a 鈥淒鈥 grade on gender equality in the recent launch of As You Sow鈥檚 Invest Your Values 鈥淕ender Equality Funds鈥 online tool. The grade is based on data provider Equileap鈥檚 assessment of greater than 3,500 global companies with respect to gender balance on their boards, senior management, and in the workforce, as well as corporate policies that further gender equality.

This grade would be unsurprising since smaller companies, on average, lag the already significant under-representation of women at larger companies. All graded members of the Small Blend category received a rating of 鈥淒鈥 or lower from As You Sow and most received an 鈥淔.鈥 Like many ratings methodologies, the underlying data is not transparent, making it difficult to understand how one grade versus another translates into real world differences regarding a company鈥檚 gender equality record.

More importantly, most sustainability ratings, including As You Sow鈥檚, entirely miss the primary way we achieve impact鈥攁ctive ownership. Equality鈥攂oth gender and racial and/or ethnic diversity鈥攊s a priority engagement focus area for 桃颜蜜色视频 and our clients. We routinely use our leverage as shareholders to encourage greater diversity on boards and management, as well as transparency on workforce demographics, to close the opportunity gap within the workplace, strengthen governance, and instill greater public accountability. Each year we follow up with portfolio companies that do not meet our proxy voting threshold of 30% diversity on the board, inclusive of women and people of color, which generally triggers a vote against directors serving on nominating committees.

What do these efforts mean for companies held in 桃颜蜜色视频鈥檚 Small Cap strategy? So far in 2019, we have reached out to 55 companies, or approximately 63% of holdings, on board diversity and equality more generally. Six companies have recently added diverse directors and seven others have expanded disclosure on efforts to improve, often committing to communicate publicly that each director candidate pool will include women and people of color. We recognize we are not alone in encouraging improvement, but our voice matters.

Knowing your investments is important, and sustainability raters have a role to play. But effective active ownership also influences ESG performance, fostering the positive change our clients seek.

The information presented should not be considered as an offer, investment advice, or a recommendation to buy or sell any particular security. The information presented has been prepared from sources and data we believe to be reliable, but we make no guarantee to its adequacy, accuracy, timeliness or completeness. Opinions expressed herein are subject to change without notice or obligation to update.

Before investing, you should carefully consider investment objectives, risk, and management fees and other expenses. Investments are not FDIC-insured, nor are they deposits of or guaranteed by any bank of any other entity.


桃颜蜜色视频 桃颜蜜色视频

We are an independent, employee-owned firm providing investment management services to institutional investors and private wealth clients.

Related Articles

Impact Investing

Annual ESG Impact Report (2023)


Impact Investing

ESG integration case study: Air Products and Chemicals


Impact Investing

Q4 2023 ESG Impact Report

Clouds Aerial View

Impact Investing

Q3 2023 ESG Impact Report


Impact Investing

Q2 2023 ESG Impact Report – 2023 Proxy Season