Sustainability at Aristotle Capital
We take into account environmental, social and governance factors as part of our analysis of businesses, as well as any potential risks. We believe that over the long term, sustainability and ESG considerations can be strongly interconnected and can have an impact on risks and returns of the companies in which we invest.
While today, many of these important topics are labeled by others as “ESG factors”, our investment team has long-held these factors as essential to long-term business sustainability. Ultimately, we believe our research supports our main objective—the successful execution of our investment philosophy and process with the goal of preserving and growing our clients’ capital while seeking to mitigate risk.
Aristotle Capital Sustainability Approach
How is Sustainability Integrated into Our Investment Process?
Our investment process begins with our research team identifying companies that meet our quality criteria, including sustainable competitive advantages and experienced, forward-thinking management teams who we believe to be good stewards of capital.
Such focus on quality has led us to favor companies that are transparent in their reporting and disclosures. We believe these companies are also better positioned to anticipate and mitigate business risks over the long term.
Aside from regular engagements on strategic long-term goals, risks and financial performance, we engage directly with companies to discuss their sustainability policies as well as ESG controversies. Our objective is to establish a dialogue around these specific topics, understand the companies’ position and any planned steps to provide a resolution.
We seek to leverage our proxy voting rights in promoting issues that are relevant to the long-term sustainability of our investments and the economic interest of our clients’ capital.