Environmental, Social, and Corporate Governance (ESG) Investing

Environmental, social, and governance (ESG) investing are the names of the key factors and considerations decision makers use when they evaluate investments. 有5种类型的负责任的投资：

• Integration: Integrate environmental, social and governance factors within the investment decision process, along with traditional financial analysis.
• Negative Exclusion: Use negative screens 作为投资过程的一部分，以避开某些被认为不道德的公司和行业(如烟草制造商、博彩公司)。
• Positive Inclusion: Focus on companies that make a positive contribution to social and environmental challenges; for example, renewable energy.
• Thematic: Target specific ESG issues by investing in solutions that address them (including improved gender diversity, lower hunger rates). 注：也有一些投资基金不被认为是负责任的投资，但专注于特定的行业或趋势，如金融科技基金。
• Impact: Aim to achieve certain measurable positive outcomes, such as human rights conditions, in addition to positive investment returns

ESG investments are similar to traditional investments except they go a step further in the investment decision-making process. In evaluating stocks or bonds as part of the investment process, ESG investments consider the impact of environmental, social and governance factors in addition to traditional financial factors. An investment might exclude certain companies or industries that have low ESG scores (negative exclusion), or it might focus on including companies or industries with high ESG scores (positive inclusion). They are available in exchange-traded funds (ETF（交易所买卖基金）s) or mutual funds, similar to traditional investment funds.

Factors that affect a company’s ESG 评分：

• 环保
  • 气候变化
  • 水资源管理
  • 污染
• 社会
  • 劳工标准
  • 人权
  • 健康和安全
• 治理
  • 高管薪酬
  • 商业道德
  • 企业治理

ESG investments allow investors to better manage risks to generate sustainable, long-term returns. ESG investments are similar to traditional investments except that they add an additional layer of portfolio analysis to identify and manage ESG-related risks that can impact both short-term and long-term investment returns. 这意味着在将损失风险最小化的同时，也可带来增加回报的机会。

Industry and academic studies by the University of Oxford, Mercer, and Morningstar (among others) show that, compared with traditional mutual funds and ETF（交易所买卖基金）s, ESG mutual funds and ETF（交易所买卖基金）s can reduce risk and provide the potential for greater long-term returns.

Investors may be interested in ESG investments for a variety of reasons:

• 因为投资 ESG ratings can mean lower risk over time.
• 因为投资 ESG ratings can mean more growth over time.
• Because your kids are interested in ESG issues, and you want them to focus more on saving and investing.
• To invest in sustainable companies while meeting your financial goals.
• So that your investments reflect your values.
• To avoid companies that have a negative impact.
• To invest in companies that have a positive impact.

这些好处并不相互排斥。例如，虽然您可能会欣赏一项投资对改善性别多元化的影响，但您可能会在了解到具有性别平衡领导力的公司比不具性别平衡领导力的公司表现更好之后，才决定进行投资。

Investors have been using ESG factors to invest for decades. More recently, ESG investing began to gain significant traction when many research studies showed favorable performance for these investments and the options for ESG investing expanded. There are more than US$30 trillion invested in sustainable assets around the world as of 2018, a 34% increase over the previous two years. Investments are expected to grow, along with investors' interest in avoiding ESG risks and finding ESG opportunities.

ESG ETF（交易所买卖基金）s
Equity and Fixed Income ETF（交易所买卖基金）s that are designed to represent the performance of companies that have high ESG ratings relative to their peers.

ESG 互惠基金
The opportunity to benefit from active fund management, which can provide downside protection, risk control, flexible mandates and the potential to outperform the market.

访问我们的网站以了解更多信息：
www.bmogam.com/ca-en/investors/responsible-investment/

ESG investments give investors a range of options in terms of expected return, risk, income and diversification. You can choose to invest in just one fund or any combination, depending on your financial goals, risk tolerance and how you want to include ESG in your portfolio. For example,

• 平衡的投资选择往往会吸引那些为退休、学费储蓄或其他中长期目标寻找易于使用、多样化和可持续的投资组合的投资者。
• 注重股息分红的选择具有增值和收益潜力，适合长期投资，如退休投资组合或生前信托。
• 全球股票选择可提供跨行业和超过20个发达国家的多样性。

• Active ownership: This feature of ESG investing includes two main components:
  • Engagement refers to working directly with companies to support and encourage corporate policies and procedures that are likely to generate positive change in key ESG 问题。
  • Proxy voting uses shareholder rights to vote on shareholder proposals in support of ESG 问题。
• Best in class: An approach to ESG investing based on positive inclusion rather than negative exclusion. For example, MSCI uses this approach to select companies for its leaders' indexes that have the highest ESG 评级。
• Integration: This approach to ESG investing can be applied to any portfolio. Portfolio managers include ESG analysis as part of the overall investment decision process, as opposed to conducting ESG analysis separately
• Negative exclusion: Funds can exclude companies on the basis of their products, policies or procedures.
• Positive inclusion: Funds can proactively select companies with positive ESG attributes, including reducing risks or seeking out ESG opportunities.
• Sustainable Development Goals (SDGs): The 17 SDG goals (below) were developed in 2015 by the United Nations and cross-industry stakeholders, to provide a roadmap toward a more sustainable world. 这是一个就具体的可持续性问题与公司进行讨论和合作的框架。
• UN Principles for Responsible Investing (PRI): The United Nations PRI were established in 2006. It lists 6 core principles for responsible investing, which guide investors on a voluntary basis.