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Sustainable Insight Capital Management

PRI reporting framework 2017

You are in Strategy and Governance » Innovation


SG 17. Innovative features of approach to RI

17.1. Indicate whether any specific features of your approach to responsible investment are particularly innovative.

17.2. Describe any specific features of your approach to responsible investment that you believe are particularly innovative.

Our approach to responsible investment reflects that ESG factors are becoming increasingly material to asset valuations. We proactively incorporate ESG into our security selection process prior to portfolio construction. ESG research is gathered from a variety of vendors and we analyze the forecasting power of each disaggregated factor of the E, S, and G scores separately.  Given methodologies, coverage and materiality vary greatly from vendor to vendor,  each  individual data set is analyzed to determine, in a statistically robust way, if these factors demonstrate any evidence of affecting  residual stock returns.  Upon determining the pricing history of a factor, we are then able to create our own proprietary blend of ESG signals, which offer the highest and best probability of that particular ESG factor contributing to portfolio returns.

We strive to deliver the highest probability of sustainable and consistent alpha while incorporating ESG factors. SICM was established with the aim of benefiting from the rapidly increasing acceptance of sustainable investing from a largely niche strategy into the financial mainstream. By combining a unique and highly differentiated security selection process with proprietary ESG (environmental, social, governance) research SICM seeks to deliver positive active returns while minimizing unintended active risks. 

17.3. Additional information.