As global awareness of environmental, social, and governance (ESG) issues grows, investors increasingly seek opportunities that deliver strong financial returns while making a positive impact. At IGS Investment, we believe that integrating ESG principles into portfolio construction isn’t just the right thing to do it can also enhance long-term performance and reduce risk.
Integrating ESG Across Asset Classes
Rather than treating ESG as a standalone “green” sleeve, we incorporate ESG factors directly into our multi-asset framework. Our process begins with a proprietary ESG scoring system that evaluates companies on metrics such as carbon emissions, board diversity, labor practices, and regulatory compliance. We then blend those scores with traditional financial measures valuation, growth trends, and earnings quality to identify high-conviction ideas in equities, fixed income, and alternatives.
Active Engagement and Stewardship
Ownership comes with responsibility. For positions that fall below our ESG thresholds but still offer attractive fundamentals, we engage directly with management teams. Through dialogue and proxy voting, we encourage better disclosures, stronger governance structures, and concrete action plans on sustainability targets. Over the past year, our engagement efforts have led to three portfolio companies committing to net-zero carbon targets and enhancing board-level oversight of diversity and inclusion initiatives.
Case Study: Renewable Energy Transition
In 2023, our research flagged an undervalued utility firm undergoing a strategic pivot toward offshore wind projects. By overlaying our ESG insights with cash-flow projections, we increased our weight in the name ahead of major project announcements. As a result, the stock appreciated over 18% in six months while delivering industry-leading emissions reductions aligning both performance and purpose.
Measuring Impact and Performance
Transparency is key. Clients receive a quarterly ESG Impact Report detailing portfolio carbon footprints, diversity statistics, and progress on shareholder resolutions. We compare these metrics against relevant benchmarks, so you can see exactly how your investments stack up on both financial and sustainability dimensions. Our internal backtests show that ESG integrated portfolios have offered comparable, and in some periods superior, risk-adjusted returns versus traditional portfolios particularly during market drawdowns when social and governance controversies can amplify drawdowns.
Looking Ahead: Sustainable Themes in 2025
We believe tomorrow’s winners will be those companies leading in clean technology, circular economy solutions, and inclusive business models. Our thematic research team is currently exploring opportunities in responsible agriculture, next-generation battery materials, and digital inclusion platforms. By blending rigorous ESG analysis with thematic foresight, IGS Investment helps clients align their portfolios with both financial goals and the broader societal transition toward a more sustainable future.
Through our integrated ESG approach combining data-driven insights, active stewardship, and transparent reporting IGS Investment empowers you to pursue returns that reflect your values, today and tomorrow.