Sustainable & ESG Investing

We build portfolios using ESG scores from MSCI/Sustainalytics, focusing on material factors (e.g., carbon emissions for energy firms). Direct indexing customizes benchmarks like S&P 500, excluding low-ESG scorers while harvesting losses. Active funds target alpha from ESG leaders, with studies showing comparable risk-adjusted returns (e.g., lower volatility from strong governance).
Environmental metrics include Scope 1-3 emissions; social covers labor standards; governance assesses board diversity. We model impact via carbon intensity (tons CO2/$M revenue) and align with SDGs. Tax efficiency via munis or ETFs minimizes turnover.
Reports track ESG performance alongside financials, with annual reviews for greenwashing risks and evolving regulations like EU SFDR.