In Rosenberg’s portfolio construction process we consider environmental characteristics of stocks as well as penalize (or divest from) stocks that appear to be among the worst offenders from a climate change perspective. The outcome is portfolios with carbon and water intensities that are significantly lower than those of a relevant benchmark. Further, our portfolios are not exposed to companies that have exhibited severe environmental controversy risk, taking yet another source of risk off the table for our clients. we also use company ‘green and brown revenue’ information to further up- or down-weight stocks. Our portfolio benefit from exclusion policies aimed at coal, palm oil, controversial weapons and soft commodities. Rosenberg equities does not invest in tobacco stocks.
Framlington approach : A significant part of our approach in ESG and impact investing originated internally and developed over time in collaboration with external investors based their specific objectives and requirements. We have integrated ESG scoring and objectives into most of our portfolios, including UN SDG themes such as climate change and the corresponding (reduction) targets on carbon exposure. In addition, all portfolios benefit from the RI exclusion policies of AXA IM, which include coal, palm oil, controversial weapons and soft commodities