Greenchip’s Approach to ESG:
We believe that identifying ESG risks prior to investment improves investment outcomes. Our internal ESG analysis enables us to monitor financially material risk factors. Companies not meeting high ESG standards will not be eligible for inclusion in the portfolio.
Engagement Drives Positive Change
Greenchip votes proxies in favour of practices and proposals that we believe will increase long-term shareholder value (e.g. promote environmental responsibility, greater transparency and say on pay).
Greenchip also engages directly with management on ESG issues (and others) where necessary, as an integral part of the due diligence process.
Greenchip’s environmental theme strategy creates more impact than traditional ESG funds.
Generally, ESG integration evaluates impact based on how companies behave, while Greenchip and other environmental theme funds also focus on what companies produce and sell.
We believe that environmental, social, and governance (ESG) investing on its own does little to address environmental challenges. ESG strategies are typically underexposed to environmental drivers, while remaining exposed to sectors like fossil fuels, banking, and healthcare. In other words, ESG funds have high correlations to the traditional economy and do not necessarily support sectors involved in producing environmental products and solutions.