Responsible investing has been woven into the fabric of our “Growth at a Reasonable Price” investment philosophy. We invest in companies for the long-term and understand that environmental, social and governance (ESG) practices, as well as financial metrics, are key for their long-term success.
North Growth Management believes that great companies take into consideration all stakeholders as well as the environment. As a result, we have a structured due diligence process that studies financial results, risks, ESG factors, market opportunities, management track records, and valuation to determine investment decisions.
We believe that ESG practices are important factors in assessing a company’s ability to outperform over the long term. Strong management teams should incorporate the appropriate best practices into their businesses.
Fossil Free Growth
At North Growth Management, being fossil-free is a core element of our disciplined, long-term results-oriented approach to investing.
Since we sold our last carbon energy holding in July 2005, both the U.S. and Canadian Equity Funds have not had any direct exposure to oil and gas producers. Our carbon-free investment strategy has not sacrificed returns for unitholders. As the world continues to transition towards decarbonization, we believe that carbon investments simply do not offer compelling, long term growth opportunities.
There are two aspects to North Growth portfolios being fossil-free. First and foremost, we do not own any oil and gas producers. Secondly, as we believe non-carbon-based energy sources will capture the dominant share of global energy demand growth going forward, we actively seek investments directly in clean and renewable energy.
Signatory of the Principles for Responsible Investment
As a commitment to our socially responsible investing process, we are a signatory of the UN’s Principles for Responsible Investment (UNPRI). As an UNPRI signatory, we aspire to the following six principles:
- Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
- Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
- Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
- Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
- Principle 6: We will each report on our activities and progress towards implementing the Principles.
Members of the Responsible Investment Association
We joined the Responsible Investment Association (RIA) to help support and grow responsible investment (RI) in Canada. The RIA is Canada’s industry association for RI. RIA members believe that the integration of ESG factors into the selection and management of investments can provide superior risk-adjusted returns while contributing to positive societal change.
Supporters of the Task Force on Climate-Related Financial Disclosures (TCFD)
By supporting the TCFD, we join more than 2,000 organizations in demonstrating a commitment to building a more resilient financial system and safeguarding against climate risk through better disclosures.
As long-term investors we understand the importance of proxy voting. We vote to represent our values and use Institutional Shareholder Services research to supplement our voting decisions.
RI Industry Recognition for North Growth Funds
Read about North Growth Funds in the News