Our Research Methodology
1. Pre-Screening Qualitative Analysis
Our initial analysis is qualitative. We inquire as follows:
- What is the impact of this company on the world?
- Does this company offer a product or service that contributes directly to global sustainability?
- Is this company working towards a more sustainable world?
- Is the company values-driven or strictly profit-driven?
- Does the company have positive and ethical business practices in place regarding their stakeholders including employees, shareholders, customers, suppliers, and local communities?
- What is the company’s impact on the environment?
2. Screening/Rating
We rate companies based on their compliance with a list of economic, social and environmental criteria. The score is based on a -1 to +1 scale with -1 reflecting a negative connotation, 0 reflecting a neutral connotation and +1 reflecting a positive/progressive connotation. There is a minimum score for inclusion in our universe of sustainable companies.
3. Financial Analysis
Our universe of sustainable companies is subjected to rigorous financial and valuation analysis.
4. Individual Assessment
Before a new investment is included in a client’s portfolio, we evaluate it in terms of the client’s investment objectives, risk aversion and sustainability and avoidance preferences.
5. Monitoring
We monitor all the companies in our universe of sustainable companies on a continuous basis.