ESG Considerations
At CORDA, we pride ourselves on identifying businesses that are committed to sustainability, good corporate citizenship, and have a positive impact on their communities and stakeholders. Consumers and shareholders are frequently holding companies to a higher standard for making a positive impact on society and the environment and are often also the most profitable.
CORDA seeks to perform ESG analysis as one component of a complex evaluation of a business for investment. This includes analysis of valuation, balance sheet, revenue and earnings trajectories, assessment of management, moat analysis, and others, to find companies that have a positive impact on the world, while reducing risk in your portfolio. Click here to read more about CORDA’s approach to ESG.
- Does the company have greenhouse gas, energy consumption, and/or carbon emissions reduction targets? What are those targets and how successful has the company been in working towards them?
- Does the company monitor water usage and have targets to reduce wasteful water use? How successful has the company been in reducing water use?
- Is the company working towards reduction in landfill waste/plastics waste? What are their targets and how successful has the company been in working towards those targets?
- Does the company have controls to prevent toxic waste from being released into the environment? How successful have those controls been?
- Is the company working towards sustainable methods of extracting/growing/producing raw input materials? How successful have these methods been?
- Does the company employ a diverse workforce with equitable pay regardless of gender/race? If not, does the company have a plan to become more diverse and equitable? How successful has this plan been?
- What policies and programs does the company employ to educate, train, and promote wellbeing within its workforce?
- What protocols does the company take to ensure worker safety? How successful have these safety standards been in protecting workers?
- What benefits do the company’s products provide to society?
- If necessary, what steps does the company do to promote safe and responsible use of its products?
- Does the company monitor its supply chain for safe working conditions, fair pay, and quality production? Does the company work to improve these conditions within the supply chain and sever ties with those that fail to meet standards?
- What actions and initiatives does the company take to improve the communities where it operates and the markets it serves?
- Is the Board of Directors composed of, at minimum, a majority of Independent Directors?
- Are the Board of Directors and Executive Committee diverse and do they include women?
- What are the committees sponsored by the Board of Directors and do they properly address the business’ needs?
- How does executive compensation align with shareholder interests?
- Does the company have strong Code of Conduct and Business Ethics policies?
- How does the company interact with shareholders?
- Is the company’s financial and sustainability reporting thorough and transparent?
- Who is auditing the companies financial and sustainability reports?
Barron’s 2021 Top 100 Advisors as of December 31, 2021. Forbes Top Wealth Advisor as of August 24, 2022.
Third-party ratings and recognition from rating services or publications are no guarantee of future investment success. Working with a highly-rated adviser does not ensure that a client or prospective client will experience a higher level of performance. Generally, ratings, rankings and recognition are based on information prepared and submitted by the adviser.
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