Integrated ESG Analysis

Calvert has found that assessing environmental, social and governance factors—in addition to the balance sheet—provides a window into a company’s truer nature and can help our analysts identify the red flags that signify risk or the green lights that show a promising corporate future.  Further, the way in which a company responds to environmental and social issues contributes to the value of its brand — positive or negative —and therefore its long-term value.

Investment management

All of Calvert’s sustainable and responsible investment (SRI) portfolios begin with the asset-class expertise of our in-house portfolio managers and carefully selected external sub-advisors. This approach is coupled with the research expertise of Calvert’s Sustainability Research Department. While traditional financial analysts study many factors that can affect a security’s value, including the overall economy, industry conditions, and company-specific factors like financial health and management, they seldom dig deep into a company’s track record on the environment, human rights, or other corporate responsibility practices. And that means that a lot of critical information can get left on the table.

On the fixed-income side, Calvert’s highly experienced, in-house bond analysts use an actively managed, “relative-value” strategy to pursue income and total-return potential in all market conditions. Calvert’s proprietary research also ventures into areas that may be overlooked by the rest of Wall Street, including non-index sectors and issues. In addition, the fixed income team may leverage the insights of Calvert’s Sustainability Research Department to varying degrees, in considering environmental, social and governance factors.

The industry’s most respected SRI research team

Calvert has one of the largest in-house research teams in the country with the ability to go deep on the issues. Our analysts review the ESG policies, programs, and performance of more than 1,000 companies for potential investment. Our analysts specialize by issue (such as workplace safety or the environment) and by industry (such as agriculture or technology). 

Calvert’s analysts review a wealth of data from diverse sources to evaluate a company’s ESG practices, policies, and track record. These can include SEC filings; reports from the UN, the World Bank and other international institutions; sustainability reports from the public or private sector, a company’s website and media coverage.

Our analysts also contact certain nonprofit groups, such as advocacy-oriented non-governmental organizations (NGOs), to inform their analysis. And, in order to sharpen our understanding of a specific sector, our analysts conduct industry reviews to look at key industry issues and trends and determine how certain companies compare to their peers with regard to emerging best practices.

In addition to evaluating companies for inclusion in Calvert’s portfolios, the analysts use corporate dialogue and shareholder advocacy and engagement to encourage companies to improve ESG performance. They may also meet with companies that don’t currently meet all of Calvert’s sustainability criteria but have the potential to make sustainability commitments that can translate into better long-term performance. Read more about how Calvert engages with companies.

For more details about Calvert's sustainable and responsible investment strategies, download a copy of Investments that Make a Difference (PDF) or request a copy by calling 1.800.368.2748.

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