Investing with Purpose
Calvert's process focuses on the pursuit of competitive performance and opportunities for positive global change. Our experience shows that companies that manage their financially material ESG factors may outperform over time.
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The Calvert Principles for Responsible Investment
Calvert's Principles for Responsible Investment serve as the framework for our research process, helping us to identify and invest in companies that tend to exhibit:
- Reduce the negative impact of operations and practices on the environment.
- Manage water scarcity and ensure efficient and equitable access to clean sources.
- Mitigate impact on all types of natural capital.
- Diminish climate-related risks and reduce carbon emissions.
- Drive sustainability innovation and resource efficiency through business operations or other activities, products and services.
- Respect consumers by marketing products and services in a fair and ethical manner, maintaining integrity in customer relations and ensuring the security of sensitive consumer data.
- Respect human rights, respect culture and tradition in local communities and economies and respect Indigenous Peoples’ Rights.
- Promote diversity and gender equity across workplaces, marketplaces and communities.
- Demonstrate a commitment to employees by promoting development, communication, appropriate economic opportunity and decent workplace standards.
- Respect the health and wellbeing of consumers and other users of products and services by promoting product safety.
- Provide responsible stewardship of capital in the best interests of shareholders and debt holders.
- Exhibit accountable governance and develop effective boards or other governing bodies that reflect expertise and diversity of perspective and provide oversight of sustainability risk and opportunity.
- Include environmental and social risks, impacts and performance in material financial disclosures to inform shareholders and debt holders, benefit stakeholders and contribute to strategy.
- Lift ethical standards in all operations, including in dealings with customers, regulators and business partners.
- Demonstrate transparency and accountability in addressing adverse events and controversies while minimizing risks and building trust.
Proprietary Five-Step Process
Leveraging dozens of data sources and proprietary research, Calvert’s research process focuses on identifying financially material ESG factors that influence company performance and assess how companies manage these factors. The process ensures that Calvert strategies invest in companies that manage their financial material ESG factors well while avoiding companies with excessive ESG risks.
Define Peer Group
Relevant company comparisons
Develop Investment Thesis
Forward-looking risk assesment
Build Structural Model
Focus on financially material ESG issues
Rate and Rank Issuer
Detailed analysis of ESG risks and opportunities
Monitor Process
Comprehensive governance approach
A Nuanced Approach to Materiality
We use more than 200 subindustry peer groups to identify financially material ESG factors that can influence company performance.
