MC is committed to being a responsible firm—in how we act and how we invest. We’ll be relentless in ensuring that the path of responsibility leads upward.
Requires More Than
From our perspective, it’s impossible to separate the notions of corporate responsibility and responsible investing. We must have an unwavering commitment to being a responsible firm in order to be truly effective responsible investors.
We Act Responsibly
We have an unwavering commitment to advancing our efforts as a responsible firm.
We Invest Responsibly
We fully integrate ESG considerations in our investment process and design purpose-driven solutions.
We’re working to reduce our impact on the global environment—rethinking our business operations to use fewer of Earth’s precious resources. And we’re working to establish appropriate science-driven environmental metrics and targets for MC.
We’re striving to become a more dynamic, diverse and inclusive firm that engages employees, advances corporate social behavior and stays connected to our many communities.
Our business model is built on a strong risk-aware culture, prudent risk-taking and a robust governance framework that continues to evolve in the context of our limited partnership.
in Portfolios with Purpose
As responsible investors, we scrutinize the environmental behavior of every company we research. It’s critical that we turn that same lens on ourselves, evaluating the impact we have on the environment—and how we can become better environmental stewards.
To implement our responsibility strategy and measure its progress, we’ve created a structure that reflects our firmwide commitment to responsibility, from the Responsibility Steering Committee to ESG analysts and investors as well as the infrastructure that supports them.
We’re active investors, and engagement is vital to our process. Each year, MC analysts engage with leaders of companies and noncorporate entities, including municipalities, supranational and sovereign issuers. And we engage selectively through our proxy voting activities.
- Independent Perspectives: With direct access to management, our active equity and fixed-income analysts and responsible investment team seek to develop unbiased perspectives on ESG issues through dialogue with companies. Different teams can engage separately or jointly when appropriate.
- Proprietary Tools: Using our in-house research and collaboration tools, MC analysts can share insights in real time and track any needed follow-ups for extended engagements.
- Constructivist Approach: As large stewards of capital, we can facilitate constructive engagement with management teams and, where appropriate, directors, to create a forum to discuss many industry-related topics, including ESG issues.
Engagement Campaign Report
In 2020, MC conducted its first, targeted ESG Engagement Campaign focused on ESG metrics in executive compensation and climate-risk goals and disclosures. MC portfolio managers and analysts engaged with over 350 of our largest holdings for action, asking companies to improve current practices or adopt new ones.
INTEGRATION AND ENGAGEMENT IN PRACTICE
Reducing Modern Slavery Risks
Modern slavery is a complex issue, and tackling it requires a constantly evolving process. At MC, we’re committed to reducing modern slavery risks associated with the operations and supply chains of companies we invest in. We’re expanding our training program to include more staff members and enhancing the monitoring of our suppliers’ compliance with MC policies on modern slavery.
Engaging with Issuers on COVID-19
Engagement has always been a vital part of our investment process, as we work to better understand issuers’ ESG behaviors and, increasingly, to advocate for change. In 2020, we logged over 12,500 meetings, including issuer-specific engagements and strategic thematic engagements.
In 2020, COVID-19 affected societies, economies and industries, so engaging on pandemic-related issues is central to dialogues with management teams—along with traditional topics such as compensation and carbon emissions. We want to ensure that issuers are being responsible corporate citizens and to better understand opportunities and threats.
First-of-its-Kind Climate Change and Impact Investment Curriculum MC’s investment professionals are collaborating with climate experts at Columbia University’s Earth Institute to translate climate science into investment analysis. This initiative has produced a first-of-its-kind climate change and impact investment curriculum, “Climate Science and Portfolio Risk.” The coursework fills a major industry need for asset managers to dig deeper into the complexities of climate change and how it impacts economic and financial outcomes. The classes cover the risks of global climate change—including rising sea levels—and predictive modeling for extreme weather, wildfires and other threats from a warming planet. The ultimate goal is to better understand the impacts of climate change and apply this understanding to investment decisions. We’re thrilled to partner with the Earth Institute in applying climate science to drive better outcomes.
In 2020, we engaged with over 350 of our largest holdings for action, asking companies to improve current practices or adopt new ones.
ESG factors are fully integrated in our investment process.
As active investors, we encourage firms to improve their business activities and practices.
Seeking to make a measurable social or environmental impact
A fixed-income strategy that invests in historically marginalized and low-socioeconomic-status communities throughout the US. Each investment has a specific intention of reducing a societal disparity (e.g., education, health, clean water) between groups.
Seek issuers that meet present needs without compromising future well-being
Sustainable Thematic Platform
Includes equity, fixed-income and multi-asset portfolios that invest in companies whose products and services contribute to achieving the UN’s Sustainable Development Goals. These portfolios focus on three themes: climate, health and empowerment.
Goal-based solutions have a responsibility goal as well as a traditional risk/return goal
Include Global ESG Improvers focused on equities that are driving ESG improvement and positive change in the world, low-carbon versions of our flagship equity offerings, and ReUSE—a diversified large-cap core equity portfolio of investments improving on dimensions of corporate responsibility.
Our fixed-income ESG research platform, PRISM, provides independent ESG assessments and scores that impact investment decisions. The goal, of course, is straightforward: better and faster information should empower better decisions and result in stronger portfolios.
ESIGHT is our one-stop online shop where all MC investment teams can access and add proprietary information about corporate ESG practices. In 2020, we launched several enhancements, including an ESG knowledge center, COVID-19 research and country scores for fixed income..
Striving for Industry Leadership in Responsible Investing
We’re dedicated to helping the asset-management industry move responsible investing forward. Our commitment is evidenced by our active history and membership in regulatory and industry organizations and initiatives.