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Our Approach to ESG

ESG Integration

We evaluate environmental, social and governance factors as part of our investment research process to help us effectively assess the long-term sustainability and durability of our companies and credits.

Our Philosophy

We believe that integrating ESG factors as part of our investment process helps us to better manage risk and enhance returns.   In-depth, fundamental analysis is at the core of our investment process, and ESG analysis is embedded within each of our equity and fixed income strategies.  We consider an ESG factor to be material if it has the potential to impact the enterprise value of a company or credit quality of a bond issuer.   Our view is that well-managed, durable businesses are more likely to manage resources efficiently, create value for shareholders and protect creditors over the long-term, in addition to maintaining access to the credit markets. 

ESG: embedded within our bottom-up approach

Our team of approximately 50 equity and fixed income investment professionals are responsible for incorporating key ESG criteria into our investment analysis and decision-making process.  Each of our investment teams employ a tailored approach that is best suited to their specific strategy, while remaining consistent with our overall investment philosophy and process. We commit ourselves to the careful study of factors that could cause impairment of capital, understanding that if ESG risks are not adequately addressed and mitigated, they may lead us to pass on the investment. 

Engagement with companies and issuers is also an important component of our bottom-up, research-driven investment approach. We engage directly with companies and issuers to gain insight into strategy, competitive positioning and durability, as well as the risks and opportunities associated with an investment, which often include ESG considerations.

In addition to integrating ESG across all strategies, for many years we have also offered the capability to customize investment solutions aligned to client-specific ESG goals or screening preferences.

To learn more about our ESG integration, please read our IM ESG Position Statement, IM Engagement Statement and Sustainable BBH report.

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