Insights

We do not categorically exclude any industries from our investment universe; instead, we focus on identifying financially disciplined corporate leaders that are successfully managing their financially material risks and opportunities.

As an asset manager and long-term investor, Calvert believes identifying financially material climate-related risks and opportunities is critical to make informed decisions and help direct large-scale capital towards the goals of climate change mitigation, adaptation and resilience while pursuing investment performance. By allocating capital thoughtfully and engaging with companies, policymakers and stakeholders, we seek to drive innovation, accountability and progress.

Critical industrial and manufacturing processes depend on the availability and quality of freshwater. As a result, disruptions in freshwater availability may pose financially material risks to investors. However, corporate disclosure and data remain a challenge due to lack of standardization and difficulties collecting data. In light of these limitations, Calvert utilizes a proprietary method to assess water risks at the sector and company level, while encouraging companies to coalesce to develop water reporting protocol similar to the Greenhouse Gas reporting protocol.

The valuation differential between international and U.S. Equity remains one of the strongest arguments for considering an allocation outside the U.S., even with the outperformance experienced so far in 2025. While many drivers behind a more constructive outlook on the merits of an allocation to international equity are macro related, our confidence is built from the bottom up, through a stock picker’s lens. At the heart of our investment approach is a commitment to investing in sustainable business models as the mechanism to compound assets for our clients.

Calvert believes that the responsible investment landscape stands at a critical intersection of environmental urgency, technological revolution, and social transformation.

This white paper discusses how climate risks and three secular trends in commercial real estate are driving new capital strategies in the industry.

In December 2024, the US Sustainable Investment Forum (US SIF)¹ released the 15th edition of its Report on US Sustainable Investing Trends. Calvert was proud to once again be a sponsor of the report

"We believe investors can benefit from aligning themselves with a circular economy."

Going forward, we expect to continue to invest in projects or issuers that help fight climate change, attempt to address income inequality, and provide access to health care, clean water and affordable housing.

In today's environment of greater deregulation and political uncertainty, we believe Calvert's deep responsible investment experience and research expertise gives us broader and deeper insight into the risk and reward potential of each investment.

Investing in Calvert Mortgage Access Fund can provide exposure to a distinct market segment that offers attractive return potential while helping to address wealth inequality and promote broader access to homeownership.

We are pleased to observe meaningful improvements on closing the gender gap since the initial launch of the Calvert Women's Principles, but there is still a long way for corporations to go to fully tap into the diverse talent pool of their surrounding demographics.

Our experience as a responsible investor shows that financially material topics are evergreen because they relate to value creation and risk management, which are relevant to investors regardless of the political climate.

This paper reaffirms why engagement is a critical part of responsible investing at Calvert and outlines the challenges of effective engagement– the definition of engagement, integrating engagement into the investment process, measuring the effectiveness of engagement and identifying financially material factors.

The Russell 1000 has decarbonized nearly 50% over the past six to seven years, based on Scope 1 and 2 carbon intensity. Our research indicates the Mag 7, with their outsized market share and favorable Scope 1 and 2 emissions, have played a significant role in that trend.

Calvert believes companies that successfully manage financially material ESG risks and opportunities are better positioned for long-term outperformance. We believe investment strategies that focus on these companies are more likely to provide opportunities for long-term value creation as well as positive global ESG outcomes.

Calvert sees abundant investment opportunities and societal benefits in directly financing the transition to a low-carbon economy by prudently allocating capital where it is needed most: high-emitting sectors that have the capacity and willingness to decarbonize.

As a responsible investor, we seek to understand the challenges facing the world today, ascertain how companies are positioned to respond to those challenges and allocate capital in a manner that drives positive change.

With markets near all-time highs, stock valuations above average, and index concentrations at historic levels, we may be approaching a market transition in which high quality returns to favor.

Calvert believes regenerative agriculture will play an important role in the progress toward an improved biodiversity landscape that benefits the larger food production ecosystem and improves the world's ability to feed a growing population.

What does global change mean for long-term investing and how should you respond? Get answers from an industry leader.

Explore the advantages of a research model that focuses on a company's financially material ESG issues.

Discover the principles Calvert relies on to create long-term shareholder value and improve societal outcomes.