ResponseAbility Research

Edgewood Partners developed our ResponseAbility research methodology to help us identify companies that are progressive leaders in incorporating the three areas of global sustainability (economic, social and environmental) into corporate management practices. ResponseAbility allows us to rate companies as to their performance in these areas.

We begin with a Pre-Rating Qualitative Analysis that scrutinizes the overall societal impact of the company and its products. Only about 20% of companies pass the initial analysis. We then rate the remaining companies on the basis of their compliance with a weighted list of economic, social and environmental criteria. There is a minimum score for inclusion in our universe of sustainable companies.

Lastly, companies are subjected to rigorous financial and valuation analysis. Before a new investment is added to a client’s portfolio, we evaluate it in terms of the client’s investment objectives, risk profile, and avoidance preferences.

Commitment to Sustainability

Our mission as a firm is clearly client-driven. However, that mission is part of our commitment to what we define as a values-driven ethic. We believe it is the values-driven ethic that provides the ethical framework and underlying motivation for sustainable business.