CNS-Responsible-Investing 2024 - Flipbook - Page 23
Illustrative Example: Aquaculture Company
Assess
Score
Integrate
Engage
Identified governance concerns
alongslide material environmental
and social strengths not fully
captured by third-party provider’s
ratings, including low water stress
due to recirculation systems
and reduced carbon intensity of
salmon production.
ESG score was upgraded relative to
third-party provider’s due to stronger
environmental performance and
improved social factors. Governance
concerns remained, but overall
exposure was deemed moderate.
Reflected improved ESG profile in
company modeling through lower
risk premiums and more favorable
relative valuation inputs. Exposure
to governance risk was noted but
not disqualifying.
Discussed our views regarding
transparency in anti-corruption
practices with ongoing dialogue on
third-party agent oversight and
quality of corporate governance
disclosures.
We also engage with company boards and
management teams to discuss responsible investing
practices, track and monitor engagement outcomes,
and participate in shareholder resolutions and proxy
voting where relevant.
“ESG factors help identify risks and
Evolution and Progress
environmental and social factors such as
As the ESG landscape continues to evolve, we remain
focused on enhancing how we assess and incorporate
material ESG risks and opportunities within natural
resource equities. Given the complexity and sectorspeci昀椀c dynamics of industries such as energy, mining,
and agriculture, our investment team regularly assesses
key ESG topics around environmental impact, social
responsibility, and governance practices.
among others, can have meaningful e昀昀ects
We actively evaluate ways to improve how ESG factors
are measured, particularly in areas such as biodiversity,
land use, emissions intensity, and supply chain
accountability. Our ongoing engagement with companies
also informs our view of management quality and
responsiveness to evolving sustainability expectations.
opportunities within the Natural
Resource Equities strategy. In particular,
regulation, subsidies, and labor conditions
on the companies’ operations, strategies
and investment outcomes.”
SHAYNE ARCILLA
VP, SENIOR ANALYST
Through this iterative process, we aim to strengthen
the accuracy, relevance, and decision-usefulness
of responsible investing insights across our
investment process.
COHEN & STEERS | RESPONSIBLE INVESTING 23
