A New Fashion Trend: ESG?

This is a case study on how investment managers are engaging public companies and embedding environmental, social and governance factors into fundamental analysis and security selection.

At Oppenheimer Asset Management, we believe ESG investment strategies allow investors to incorporate socially conscious principles into their portfolios without sacrificing investment performance. A growing number of investors are expressing interest in strategies that incorporate environmental, social and governance factors into their investment processes.

The increased demand for these investments is changing the way public companies run their businesses. To demonstrate how ESG managers are influencing company management teams to improve in these areas, we put together a series of case studies that give real-world examples of ESG in action.

Our latest case study focuses on ClearBridge’s interactions with luxury retailer Burberry. The company was an early adopter of ESG best practices, having had an ESG program in place since 2004.Today, Burberry is focused on minimizing the environmental impact of its operations, aligning management compensation with shareholder interests and diversifying its boardroom by adding more women.

Specifically, Burberry is making strides toward its goal to become carbon neutral by 2022, promoting career training in local communities and streamlining its communication from senior management to its retail stores. The following Q&A highlights Burberry’s management of critical ESG initiatives on the heels of ClearBridge’s recent meetings with senior management.