As value managers, Beutel Goodman’s primary objective is to deliver superior risk-adjusted portfolio performance to our clients over the long term. We pursue this through the ownership of debt and equity positions in high-quality companies. Companies that gain high marks for their environmental, social and governance practices often share many of the sound fundamentals that are attractive to our value-investing approach. ESG factors have the potential to materially affect the long-term sustainability of a business and are thus are an important part of our analytical process.
- Climate change
- Resource depletion
- Water security
- Human rights
- Diversity and inclusion
- Modern slavery
- Child labour
- Working conditions
- Employee relations
- Board effectiveness
- Executive compensation
- Bribery and corruption
- Board diversity
- Bondholder rights
- Tax strategy
- Continue to incorporate ESG issues into our investment analysis and decision-making processes
- Join and participate in collaborative ESG initiatives
- Continue to improve on our internal CSR initiatives
- Incorporate PRI Assessment report feedback into our next reporting cycle
- Be transparent with our clients about our progress
Our rigorous research methodology encompasses a fundamentally driven analysis to identify valuation opportunities in quality companies from a bottom-up perspective. ESG criteria are considered part of the material risks associated with the long-term sustainability of investments. Using a bottom-up, disciplined, value-investing approach, each equity and credit research report or update we prepare includes ESG considerations. Further, our own in-house research is enhanced through the use of specialist third-party ESG analytics.
Responsible investment research responsibilities are shared amongst the entire investment team. All portfolio managers are charged with the responsibility of considering material risks, including ESG issues, for all investments they recommend. ESG policy oversight and review responsibilities lie with the firm's Management Committee.
Engagement and Voting
Part of our highly disciplined investment research process involves meeting with company management, which can provide important insights into issuers and ESG factors, and how these may impact long-term shareholder value. We believe that we can effect change on ESG issues by engaging with management as owners of a company's stock or bonds. Where relevant, we will strive to promote positive change if our analysis indicates a company falls short on stated policies or where material, unaddressed ESG issues exist or ESG disclosure is inadequate. We support efforts by companies to create strong governance policies and to develop a clear strategic vision to enhance value to shareholders.
We believe that the voting of proxies can encourage sound corporate governance and improve environmental and social policies and is essential to the advancement of shareholder value. As part of our portfolio management responsibilities, we review each proxy item for our holdings before casting votes. We assess all motions, including those relating to ESG practices, based on their consistency with long-term shareholder value creation.
Proxy voting is not as prevalent in fixed income, and typically only occurs when a company is seeking to change its trust indentures. The fixed income team actively engages with company management on ESG issues that we deem will affect the sustainability of the company’s cash flows and ultimately, the company’s ability to repay its debt or otherwise adversely affect the value of the bond.
Collaboration and Industry Participation
Beutel Goodman is a member of collaborative initiatives and regularly participates in industry forums on ESG and responsible investing. Beutel Goodman became a signatory of the UN-sponsored PRI in 2019, formalizing our commitment to the PRI’s key tenets. Members of our investment teams are pursuing the Fundamentals of Sustainability Accounting (FSA) designation from the Sustainability Accounting Standards Board (SASB).
Find Out More
- Read Beutel Goodman's Responsible Investing Policy Statement, which governs all of the firm's investments.
- View our annual records of proxies voted for all holdings in our mutual funds
- Find out how we are addressing corporate responsibility initiatives, including environmental programs and diversity and inclusion in our own office.
- Contact us