We believe that businesses that incorporate material sustainability factors into their strategy, operations, and culture will outperform over the long-term.

Inherent Group Spotlights:

ESG for Active Investors
ESG for for Credit Investors
2022 Inherent Sustainability Report

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ESG Information

Who We Are

Our mission is to drive increased investment in sustainability-linked strategies by demonstrating superior risk-adjusted returns in our funds. We aim to show businesses that they can create revenue growth opportunities and lower their costs of capital by leading on material sustainability issues. Through our engagement with selected core position companies, we encourage business owners and managers to incorporate sustainability into their decision-making.

We are value investors focused on long-term investment opportunities as well as opportunistic dislocations. We use environmental, social, and governance (ESG) factors to source and underwrite core position investments.

Strategy

Through our engagement, we aim to inspire investors and managers to incorporate sustainability into their decisions and to encourage business more broadly to address environmental and social challenges. Great businesses can lower their cost of capital by leading on ESG issues. Conversely, we expect the capital markets to increasingly penalize businesses that do not adequately address material sustainability issues. We seek both to catalyze and capitalize on these developments.

"Great businesses can lower their cost of capital by leading on ESG issues."

We generally seek to make core position investments in companies that fall into one of the following categories:

SDG ALIGNED 

Companies addressing growth trends and societal challenges directly through their products and services, including:

  • Modernization of the electric grid
  • More efficient water treatment and reuse
  • Electrification of transportation; car-sharing infrastructure
  • The spread of educational technology and services
  • Healthier and environmentally better food, production technology, and retail models
  • The move towards outcomes-based healthcare

ESG INTEGRATED 

Companies addressing societal challenges through their broader business practices, including:

  • Emissions and water intensity
  • Worker safety
  • Supply chain standards
  • Diversity and inclusion
  • Board independence and quality
  • Executive compensation
  • Culture: purpose and clarity

ESG Insights