ESG information is included in our small-cap value fundamental investment analysis. Our portfolio is constructed of investments we find with the best overall value.
Our objective is to maximize upside and control downside. While we exclude, through screening, certain industries in our stock selection process, we also may underweight or overweight certain sectors based on ESG risk. For example we may underweight fossil fuels because we find investing our money elsewhere gives us better returns.
We look to see how organizations report on how they are addressing climate change risks within their business and the indicators we can follow to see their progress.
Research meetings are held weekly to discuss ideas and areas of investment. In general we buy and hold stocks for long term. Economic factors like climate change or changes in government policies are taken into account when picking stocks.