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ESG

Overview

Since inception, Enam AMC has believed in and adopted the ethos of socially responsible investing. The increasing emphasis on environmental and social issues has led to a natural extension of our SRI-focused investment philosophy towards a totally integrated ESG approach.

As a socially responsible asset manager, we feel it prudent to factor in emerging risks and opportunities to evaluate how a company stewards all forms of capital – social, human, physical, natural, and economic.

In the long term we believe that companies that focus on sustainability will have higher acceptance from consumers, easier access to capital, lower risk, and higher valuations.

ESG investing involves identifying and applying non-financial factors to identify material risks and growth opportunities.

Environmental Factors

  • Carbon Emissions
  • Waste Management
  • Water Stewardship
  • Biodiversity
  • Air Quality
  • Energy Management

Social Factors

  • Human Rights
  • Human Capital Management
  • Product Quality
  • Customer Privacy
  • Data Security
  • Corporate Social Responsibility

Governance Factors

  • Shareholder Treatment
  • Board & Committee Functioning
  • Compliance Record
  • Capital Allocation
  • Accounting Quality

Evaluation Methodology

Integrating ESG in our research process
  • Materiality-focused approach to evaluating our coverage universe.
  • We evaluate materiality based on Sustainability Accounting Standards Board (SASB) sector guidelines as well as leveraging the experience of our research team.
  • Our proprietary approach rates companies based on their disclosures for material aspects and qualitative factors. Companies are rated on three broad themes –

Materiality focused approach to evaluating coverage universe

Governance Sustainability Culture E&S Performance
Minority Shareholder Treatment E&S Oversight Environmental
Compensation Practices E&S Strategy Social
Board and Committee Structure Human Capital
Access and Accounting Quality Business Model and Innovation
Policies | Ethical Conduct Leadership and Governance

Read our full Responsible Investment Policy to learn more about our commitment and approach.

Download

Commitment Towards Responsible Investing

Since being a PRI signatory in 2021, Enam AMC has committed to upholding all six PRI principles.

  • We will incorporate ESG issues into investment analysis and decision-making processes.
  • We will be active owners and incorporate ESG issues into our ownership policies and practices.
  • We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  • We will promote acceptance and implementation of the Principles within the investment industry.
  • We will work together to enhance our effectiveness in implementing the Principles.
  • We will each report on our activities and progress towards implementing the Principles.

Our firm is at the initial phase of its ESG integration journey. Once all companies within our coverage are evaluated on their sustainability practices, we will incorporate the same in our investment philosophy.

Signatory of PRI Principles for responsible investment logo