How does a company’s operations contribute to social issues?
When looking at a company’s supply chain, does child labor still exist? Is there diversity and equal opportunity within the workplace? Are shareholder and employee interests taken into account? Does corporate social responsibility exist? When faced with a problem, what does the company do to solve the issue?
Case Study: JPMorgan (JPM)
JPMorgan pledged in early 2018 to increase lending to small businesses and affordable housing clients by a combined $14 billion. The bank attempts to simultaneously pursue loan growth and invest in the community. The stock is up over 10% in the first quarter of the year, supporting our proposition that ESG investing reduces risk and enhances odds of profitability.
We look at a company’s energy use, waste, pollution, natural resource conservation and animal treatment. We also evaluate which environmental risks might affect a company’s income and how the company is managing those risks.Learn more
We want to know that a company uses accurate and transparent accounting methods, and see that common stockholders are allowed to vote on important issues. We also want companies to avoid conflicts of interest in their choice of board members and use of political contributions.Learn more