Ellerston Capital believe that Environmental, Social and Governance (ESG) issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and timeframes).
For Ellerston Capital, ESG issues are treated as another piece of the investment puzzle, used in the process of analysing and valuing companies. We view ESG issues primarily as a measure to highlight areas of potential risk during the analysis of investee companies and may exclude certain companies from being investment grade as a direct result.
Ellerston Capital has established an ESG approach which it incorporates into the overall investment process of our Australian strategies.
The approach looks at all 3 ESG issues from the prism of materiality to the company and also the performance of the company on each ESG factor.
We regularly monitor the ESG score of our core Australian funds against the ESG score of the benchmark index and partner with ‘EIRIS’ (Experts in Responsible Investment Solutions) / ’CAER’ (Corporate Analysis Enhanced Responsibility) who supply customised quantification data on the universe and also company specific ESG research.
Ellerston Capital is proud to be a member of the Responsible Investment Association Australia (RIAA).