Our experience as long-term investors, and as people, leads us to believe that the investment maxim of increasing shareholder value above all other concerns should be re-examined.
We should ask: what are the broad effects of investing in a company – on society, the environment and on all shareholders – and can they be divorced from the movement of its stock price?
Environmental, social and governance risks can incur harsh financial consequences, particularly within the extensive time horizons of longterm investors, such as ourselves.
It is part of our duty to integrate these risks into our investment decisions, and engage companies about them – for the benefit of our clients, their investors and for the innocent bystander, too.
Our rating of Moody's approach to ESG analysis