CNS-Responsible-Investing 2024 - Flipbook - Page 15
Cohen & Steers’ Four Step ESG Integration Process(1)
Assess
Identify and assess material
ESG factors for each sector
based on industry knowledge
and third-party research
• Determine E, S and G pillar
weights and underlying factor
weights
•
Score
Integrate
Engage
Determine ESG scores for each
company in investable universe
• Apply proprietary ESG
assessments
• Consistently apply internal ESG
scoring scale
• Scores assessed at least quarterly
Integrate ESG scores into
investment decisions
• Scores and/or underlying data
are integrated into company
valuations
• Approach varies by strategy
Effect positive change and
track outcomes
• Engage with company boards
and management teams
• Undertake proxy voting
• Promote industry best
practices
•
Key ESG issues and factors
considered across our strategies
Environmental
GHG reduction targets and policies
Physical climate impacts
• Climate change vulnerability
• Biodiversity
•
•
Social
Human capital management
Customer satisfaction
• Safety practices
•
•
•
“We continue to challenge ourselves,
and our ESG investment framework—
along with our enhanced scorecard
system—not only helps us manage
risk but also uncover investment
opportunities, which I believe has
contributed to our investment
performance. Our leading position
within REITs enables us to uphold bestin-class governance standards and act
in the best interests of our clients.”
•
Governance
CEO & management acumen
Board structure and alignment
• Shareholder rights & structure
• Audit & risk oversight
•
•
JAN WILLEM VAN KRANENBURG
VP, MANAGING ANALYST
(1) The ESG process encompasses Cohen & Steers listed real assets strategies and does not include
integration in private real estate strategies.
COHEN & STEERS | RESPONSIBLE INVESTING 15
