It’s Just Good Business: Using ESG in the Investment Process

Incorporating sustainability analysis in an investment strategy may help uncover opportunities and avoid potential risks.

As highly active managers, Natixis Investment Managers is committed to ESG (environmental, social, governance) principles. Through the expertise of our affiliated managers, we have more than 30 years of experience in responsible investing. The majority of our managers integrate ESG factors into their investment process. Globally, more than 85% of our assets are managed by affiliates that are signatories to the United Nations Principles for Responsible Investment (UN PRI).1

We offer a range of funds and strategies centered on the belief that ESG factors can play a meaningful role in uncovering opportunities, identifying potential risks, and generating competitive returns for investors. Learn more by downloading our ESG Capabilities Brochure.

ESG 101

“ESG” is a general term that covers a variety of investment approaches. ESG strategies factor environmental, social, and governance considerations into the investment process, with the goal of generating long-term, sustainable returns for investors.

  • Environmental – Renewable energy, lower carbon emissions, water management, pollution control
  • Social – Labor practices, human rights, data protection, selling practices, corporate supply chains
  • Governance – Board makeup, corruption policies, auditing structure

Considering ESG criteria can help portfolio managers identify companies capable of creating sustainable value and manage a full range of risks. All else equal, well-run companies with sustainable business models may be better long-term investments. For these reasons, the investment criteria inherent in ESG analysis may be well-aligned with the interests of long-term investors.

Growing Investor Interest in Sustainable Investing

Survey data gathered over the past several years documents increasing interest in responsible investment solutions on the part of institutions, individuals, and retirement plan participants. Investors of all types are looking for ways to invest more sustainably, consistent with ESG factors.

6 in 10 investment professionals 
agree there is alpha2 to be found in sustainable investments.3

Nearly two-thirds of institutional investors
believe ESG will become an industry standard within the next five years.4

75% of retirement plan participants
say it's important to make the world a better place while growing their personal assets.5

Implementing ESG Strategies

There are many ways to implement responsible investing strategies, but they fall into three basic categories. Diversifying across strategies may help manage investment risk and increase opportunities for return. Natixis Investment Managers offers solutions from our affiliated asset managers in all three categories.

Screening securities on ESG or values-based criteria

Incorporates ESG factors into fundamental analysis to pursue alpha and mitigate risk

Investment selection guided by ESG themes and positive impact

Want more information?