ESG
Where ESG sits in the process
A consideration that changes a position is part of the process; one that does not is a label.
The purpose of an investment is the first question, and its consequences are part of the answer.
What this means in practice
- A theme is assessed on the transition it depends on, not on the label attached to it.
- Governance is read as a risk that changes position sizing, rather than as a score reported after the fact.
- Where a consideration does not change what we hold, it is not claimed as a reason for holding it.