Practical ESG Research for Higher Risk-Adjusted Returns

Using best practices in the application of ESG analysis, portfolio managers can
better identify and manage downside risk in their portfolios, generating incremental alpha.

The application of ESG analysis in investment management today is admittedly confusing. Despite a sea of “experts”, there is no definitive roadmap. It can consume significant human and financial resources, and the rewards often seem uncertain at best. Is it really worth the investment?

We believe that ESG analysis can be simplified and more efficiently utilized, while still generating meaningful incremental alpha for your portfolio. We see ESG as the collision avoidance system in your vehicle which allows you to anticipate and steer clear of a crash. Our ESG research will provide you with the analytical GPS to guide your journey, warning lights for your dashboard, and real time learnings from recent ESG fender-benders.


How We Can Assist:

Through our proprietary independent research, we equip you with a virtual ESG toolkit to draw upon as needed for use in your own portfolio:

  • We help make sense of the multiple (and often conflicting) ESG scores offered by various service providers. How did they reach their respective scores, and how can they be so different?
  • We provide examples of reported (and typically foreseeable) corporate ESG missteps. Unfortunately, these are increasingly common and can blow a hole in your portfolio performance. We dissect these events, provide you with a synopsis of the lessons learned, and point you to those places within your own portfolio where those same issues may be lurking.
  • We understand what works (and what doesn’t) in implementing ESG analysis within an investment process, and provide practical guidance on current best practices.

In addition, we can provide bespoke ESG research on specific portfolio holdings, highlight areas of potential concern, and present our findings either directly to you or to the company’s management/board on your behalf.

Sarosh Nanavati, MBA, CFA, ICD.D

Sarosh is an experienced capital markets professional with over 30 years in the financial sector, at a variety of firms including UBS Global Asset Management, Sun Life of Canada, Scheer Rowlett & Associates, Wellington West Capital Markets and UBS Securities. He has held a number of diverse and challenging positions including Equity Portfolio Manager, Board Member, Equity Research Analyst, Institutional Equity Salesperson, and Commercial & Corporate Lender. He currently sits on two not-for-profit boards, with positions on both the governance and audit committees. Through his consulting firm Capital Markets Advisory Services, Sarosh currently provides financial consulting services to private and publicly-listed Canadian companies.

Sarosh received his Bachelor of Commerce degree from the University of Toronto, and earned his MBA at the UBC Sauder School of Business. He is a CFA charterholder, and recently achieved his ICD.D designation.

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