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. 負責任投資有5大類型：

• Integration: Integrate environmental, social and governance factors within the investment decision process, along with traditional financial analysis.
• Negative Exclusion: Use negative screens 這是投資過程的一環，可避免投資於部份被視為不道德（如煙草製造商，賭博業務）的企業。
• 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). 注意：還有投資基金不會被視為負責任的基金，但這類基金主要投資於特定產業或趨勢，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 (交易所買賣基金s) or mutual funds, similar to traditional investment funds.

Factors that affect a company’s ESG 得分：

• 環境
  • 氣候變遷
  • 水源管理
  • 污染
• 社會
  • 勞工標準
  • 人權
  • 健康安全
• 治理
  • 高階主管薪資
  • 商業道德
  • 企業治理

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. 這表示旨在大幅降低風險損失，也可能表示尋求增加回報的機會。

Industry and academic studies by the University of Oxford, Mercer, and Morningstar (among others) show that, compared with traditional mutual funds and 交易所買賣基金s, ESG mutual funds and 交易所買賣基金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:

• 因為投資於優良 ESG ratings can mean lower risk over time.
• 因為投資於優良 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.

這些好處並不互相排斥。例如，您可能原本就對有助於改善性別多元化的投資項目有良好的印象，在了解到具備性別平衡領導階層的公司往往比沒有性別平衡的公司表現更好之後，您可能會就此作出投資決定。

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 機會。

ESG 交易所買賣基金s
Equity and Fixed Income 交易所買賣基金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.

瀏覽我們的網站了解更多資訊：
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,

• 平衡型投資選擇往往吸引尋求易用、多元化和可持續投資組合的投資人，以實現他們的退休、大學教育或其他中期或長期投資目標。
• 著重股息的選項可以提供增長潛力和收入，且是為長期投資而設計，例如可供退休投資組合或生前信託選擇。
• 全球股票選項可提供跨越不同產業的分散投資，且投資於超過20個已開發國家/地區。

• 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 問題。
  • Proxy voting uses shareholder rights to vote on shareholder proposals in support of ESG 問題。
• 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 評級。
• 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 機會。
• 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.這些是用於與特定的永續發展議題相關企業討論和合作的框架。
• 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.