ESG PORTFOLIO
ENVIRONMENTAL SOCIAL GOVERNANCE

WHAT IS ESG INVESTING?

ESG, formally known as Socially Responsible Investing (SRI), is an investment orientation emphasizing a company’s handling of environmental, social, and governance strategies.
What considerations go into sustainable investing?

Environmental

Carbon emissions
Energy efficiency
Water scarcity
Wast management
Pollution mitigation

Social

Diversity & workplace policies
Labor standards
Supply chain management
Product safety and usefulness
Community impact

Governance

Board structure
Executive compensation
Political contributions & lobbying
Bribery and corruption policies & oversight
Strategic sustainability oversight

These are examples of ESG criteria but not a complete list.  Souce: Morningstar

Benefits of ESG Investing

  • Actively addresses solutions to real global problems including climate change, social injustice, and board diversity.
  • Enables investors the opportunity to align their personal values with their investments.
  • ESG analysis reveals sustainable competitive advantage and helps mitigate potential long term risk.
Cohen leadership high five
Transition to “Stakeholder Capitalism”
  • As generational wealth transfers to millennials, the importance of sustainable investing follows.
  • 95% of millennials are interested in sustainable investing.
  • “Stakeholder Capitalism” is the ideology that corporations serve the interest of all stakeholders both corporate and general public. (Instead of just shareholders?).

How interested are you in sustainable investing (also known as impact investing) which is the practice of making investments in companies or funds which aim to achieve market-rate financial returns while pursuing positive social and/or environmental impact?

general population graph
Millenials graph

Sources: Morgan Stanley table/research, Business Roundtable, Investopedia

Current ESG Funds Landscape
ESG Financial Graph
Stakeholder Capitalism in Action
Karel Capital Inc. Maintains a Model ESG Portfolio
  • All Mutual Funds and Exchange Traded Funds (ETFs) are handpicked and based on high ranking ESG scores and positive impact on ESG issues.
  • All Mutual Funds and ETFs have a Morningstar Sustainability score of 3 or higher
    Approximately 85% of holdings received a Morningstar low carbon score.
  • Using industry leading 3rd party sources including Sustainalytics/Morningstar, MSCI, and ISS for ESG scores and sustainability ratings.