CNS-Responsible-Investing 2024 - Flipbook - Page 22
RESPONSIBLE INVESTING
Natural Resource Equities
Strategy Overview
Cohen & Steers’ Natural Resource Equities strategy
provides access to companies involved in the production,
extraction, and processing of commodities and
natural resources, including energy producers, mining
companies, and agriculture-based businesses. These
equities o昀昀er exposure to tangible assets with strong
links to global supply dynamics and commodity cycles.
Our investment process combines a proprietary
risk parity framework with rigorous fundamental
analysis. We leverage quantitative tools to create
a more risk-aware investment universe and apply
disciplined top-down and bottom-up research to
identify opportunities across sub-sectors. The strategy
is supported by a seasoned team with deep expertise
across real assets and a long track record of navigating
cyclical markets.
Natural resource equities can serve as an e昀昀ective
in昀氀ation hedge, o昀昀ering attractive return potential
over a full market cycle. Their distinct return drivers
and low correlations to other asset classes also
enhance portfolio diversi昀椀cation. Through disciplined
research and active risk management, we aim to
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COHEN & STEERS | RESPONSIBLE INVESTING
deliver long-term value while helping investors
navigate dynamic commodity markets.
Our ESG Integration Approach
Within our Natural Resource Equities strategy, we apply a
structured ESG integration process tailored to the unique
risks and dynamics of the sector. Analysts identify and
assess material ESG factors and assign weights based
on industry expertise, market standards, and subsector relevance. In addition to reviewing MSCI data, we
incorporate additional risk factors not fully captured by
third-party models.
We assign ESG scores to companies using a proprietary
scoring scale that evaluates both exposure to key issues
and the quality of management’s response. Scores are
determined relative to industry peers and are informed
by a range of inputs, including company 昀椀lings, direct
engagement with management teams, and third-party
sources such as MSCI, Bloomberg, and sell-side research.
ESG considerations are integrated into company models
by re昀氀ecting associated costs, risks, and opportunities
wherever possible. These insights help re昀椀ne security
analysis and inform investment decisions.
