At Ancoria we believe that, as long-term investors, accounting for environmental, social, and governance (ESG) risks and opportunities can help us manage risk better and provide sustainable value to our customers while helping create benefits for the society as a whole. This belief drives all our investment decisions and has been paramount in the design of our investment decision-making process.
ESG factors are usually non-traditional factors that can influence, and be influenced by, business activities. ESG factors affect investment returns through their impact on corporate financial performance and through the risks they pose to broader economic growth and financial market stability.
ESG integration is the practice of incorporating ESG information into investment decisions and analysis to help enhance risk-adjusted returns. This means that ESG-related factors that are material to the risk and return of the investment are considered alongside traditional financial factors when making an investment decision.