Eden will actively invest in companies with strong environmental, social and governance policies
ESG is a key consideration in our investment process. Eden will actively invest in companies with progressive ESG policies and screen for those which do not meet required ESG operating standards.
We disagree with the notion that taking a more sustainable approach to investment limits gains. From a performance and risk management perspective we believe that being ESG conscious assists in delivering better risk adjusted returns.
Companies with strong and properly applied ESG policies are less likely to:
- Incur reputational damage;
- Incur environmental related fines;
- Incur downtime due to health and safety concerns; and
- Be impacted by the implementation of negative externality policy such as the pollution charges or carbon taxes.
Eden will negatively screen investment in companies that engage in:
- Child /slave labour;
- Tobacco and gambling;
- Thermal coal.
We believe that environmental sustainability is a key resources sector growth thematic:
The transition to clean energy generation, electrification and sustainable development is likely to be a preeminent driver of demand for commodities and provide attractive opportunities for specialist resources investors.