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By Edward KamonjohDirector of Impact Management, Calvert Research and Management

Washington - In 2020, Calvert introduced the Transparency Tool on our website to allow financial advisors to easily compare the environmental, social and governance (ESG) impact metrics of mutual funds and ETFs. The recently reconfigured Tool now injects additional transparency into data comparisons and evaluation with the inclusion of proxy-voting data.

The Transparency Tool is powered by data from Morningstar and enables investment professionals to evaluate a broad spectrum of mutual funds and ETFs across a comprehensive set of traditional portfolio characteristics and ESG key performance indicators (KPIs). It provides a side-by-side view of how selected funds compare on a wide array of ESG, fundamental and risk metrics — and now proxy-voting measures.

With this addition, financial advisors now have the ability to readily assess whether a fund, an ETF or a set of funds truly demonstrates a robust complement of competitive fundamentals, strong ESG credentials and rigorous proxy-voting practices that align with sustainability goals. We believe advisers and their clients will find this revised Transparency Tool more insightful and actionable.

Features of the Tool's Proxy-Voting Data

The proxy-voting component of the Calvert Transparency Tool includes the following shareholder resolution categories:

  • Environmental themes, including climate change
  • Social issues, including human and labor rights, public health and product safety, and political influence
  • All shareholder resolutions

The Transparency Tool also includes voting records for the following management resolution topics:

  • Advisory votes on executive compensation
  • Board of director elections
  • All management resolutions

Calvert has long championed mutual fund transparency with regard to proxy-voting practices. We were one of the first responsible investing firms to publicly disclose proxy votes soon after casting them. For several years, we have disclosed our proxy votes ahead of shareholder meetings so our clients and investors can view our stance on various issues.

We believe one of the Tool's primary benefits is helping investment professionals distinguish between fund strategies that intentionally and genuinely incorporate ESG integration across the full investment lifecycle — including proxy voting and engagement — and those whose strategies may be merely a marketing exercise. For investors who are interested in avoiding "impact washing," transparency tools like Calvert's can help separate positive impact leaders from laggards by shining light on actual practices and performance profiles.

Bottom line: Calvert is pleased to introduce this diverse ensemble of proxy-voting topics in our Transparency Tool. The Tool's information set now affords financial advisors and their clients a comprehensive view of financial, ESG and impact performance KPIs across a full spectrum of funds. The Tool is free for financial professionals. Log in here for access.