What is ESG?

ESG is often used interchangeably with the term “sustainable investing.” We look at sustainable investing as the umbrella, and ESG as a source of data for identifying and informing investment solutions.

ESG data is most often categorized as “non-accounting” information because it captures components important for valuations that are not traditionally reported on. Over time, the valuation of companies has become more complex, with a growing portion tied up in intangible assets. ESG metrics can provide insights into such intangibles including brand value and reputation, by measuring decisions taken by company management that affect operational efficiency and future strategic directions.

Environmental (E)

Covers themes such as climate risks, natural resources scarcity, pollution and waste, and environmental opportunities.

Social (S)

Includes labor issues and product liability, risks such as data security, and stakeholder opposition.

Governance (G)

Encompasses items relating to corporate governance and behavior such as board quality and effectiveness.
The ESG considerations that are material will vary by investment style, industry, market trends, and our client’s specific goals.

ESG INTEGRATION AT ONE WEALTH ADVISORS

Our activities to integrate sustainability considerations into the investment process mirror the diversity of clients we serve, as well as the range of investment strategies. Across One Wealth Advisors, we utilize investment products that incorporate data and insights around sustainability considerations in the portfolios they build for our clients.

For the clients that give us a mandate around ESG investing, the investment solutions we consider attempt to connect complimentary ESG approaches which remain in-line with the client’s investment mandate.

SEE BELOW SOME OF OUR PARTNERS’ APPROACHES TO ESG INTEGRATION POLICY

BLACKROCK ENVESTNET

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.