GQG seeks to optimize risk-adjusted returns, in part by considering ESG factors into its investment process to (1) understand the sustainability of earnings growth for the companies in which we invest and (2) seek to improve our investment opportunities to create shared value for our clients.
We integrate ESG considerations in our fundamental, bottom-up analysis of potential portfolio companies. We believe earnings drive stock prices and we view ESG shortcomings as a material risk to a company's ability to achieve sustainable earnings over the long-term. As a result, our bottom-up, fundmanetal analysis encompasses non-financial considerations. Issues such as labor relations, corporate culture, environmental responsibility, and overall goodwill are integral to our analysis and are given meaningful weight in our valuation of apotential portfolio company.
As long-term owners of our companies, we recognize the rights and responsibilities that come with equity ownership. Our core objective is to maximize the long-term returns to our investors and we believe that this is best achieved through ownership of companies with long-term sustainable earnings growth. Companies that act in the best interests of their shareholders are companies that have due regard for their other stakeholders.