Impact Blog
Transparency Tool can help advisors with ESG impact conversations

The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Calvert disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Calvert are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Calvert fund. References to individual companies for Engagement or Research purposes are provided for illustrative purposes only and may not be representative of the results of all of Calvert’s engagement efforts. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results.

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      By Edward KamonjohDirector of Impact Management, Calvert Research and Management

      Washington - Calvert has long advocated for greater transparency in the asset management industry. The more investors know about exactly what companies they own — and what impact their holdings have on the planet and people — the easier it can be to make informed decisions about what to include in an individual portfolio.

      Companies' positive and negative environmental, social and governance (ESG) impacts matter because we believe they are inextricably intertwined with their financial vitality, sustained long-term value creation wherewithal and prevailing social license to operate.

      The Calvert Transparency Tool was introduced in 2020 to ease ESG impact comparisons for financial advisors. The Tool is powered by data from Morningstar and allows investment professionals to evaluate mutual funds and ETFs on a broad range of traditional portfolio characteristics and ESG KPIs, including a side-by-side view of how fund selections compare on a wide array of ESG, fundamental and diversification metrics.

      On Earth Day, a new way to examine impact on the planet

      On Earth Day, companies often make claims that they have the planet's best interests in mind, but those assertions are not always in alignment with their actions. We believe a primary benefit of the Tool is its ability to help investment professionals distinguish strategies that veritably embed ESG integration and engagement via prospectuses, and those that purport to be ESG products but may be so in name only. For investors interested in avoiding such "greenwashing," we believe tools such as this one can help distinguish corporate leaders and laggards.

      Additionally, the Calvert Transparency Tool can benefit financial advisors and their clients by:

      • Facilitating informed and contextual Responsible Investing discussions.
      • Displaying degrees of ESG adoption and purpose using side-by-side comparisons that incorporate both traditional and ESG metrics.
      • Sparking conversations that center around more holistic ESG analysis, moving beyond scores to discuss ways in which engagement can encourage ESG improvements that may lead to better financial and impact performance.

      Bottom line: The Tool is free for financial professionals to use. Log in here for access.