Our approach to responsible investing

Strategic Global Advisors, LLC (“SGA”) is committed to responsible investing and promoting responsible practices while enhancing economic outcomes for our clients. SGA integrates environmental, social, and governance (“ESG”) factors into its investment practices through fundamental analysis in conjunction with ESG research provided by third parties, such as Institutional Shareholder Services, MSCI and others. It should be noted, in our normal investment process, we do not exclude companies or industries from consideration, but rather seek to partner with companies to enhance economic outcomes for our clients. SGA is committed to engaging with companies where ESG concerns are relevant and work to make positive change through that engagement. To the extent requested by a client, we can further customize strategies to meet any client needs or concerns. Finally, SGA incorporates ESG practices internally in our day-to-day operations through various corporate initiatives.


Within the Investment Process

SGA’s fundamental research team considers ESG factors in the investment decision-making process when reviewing securities suggested by our quantitative model.

Fundamental research analysts consider ESG factors in conjunction with business risk, credit risk, etc. and take a holistic approach in analyzing companies from a fundamental perspective, weighing the pros of the investment versus the risks. The firm considers whether companies are prioritizing short-term gains for the benefit of management over the long-term well-being of shareholders when evaluating investment opportunities and seeks to understand the long-term sustainability of a company’s business model, and how factors, including ESG factors, can impact an investment opportunity’s risk and return characteristics.

ESG considerations include environmental, social, and corporate governance factors that investors, asset owners, and managers often consider in the context of corporate behavior. Certain examples of such factors can include those related to energy efficiency, waste management, labor standards, workplace safety, customer privacy, executive compensation, conflicts of interest and disclosure amongst numerous others.

SGA is committed to facilitating and improving dialogue with companies, and values partnering with other investors to share resources and improve the chances of successfully pushing for positive change, when we believe such will enhance long-term shareholder value.

SGA employs responsible investing principles while working to enhance economic outcomes for our clients


Within the Firm

SGA is committed to responsible ESG practices within its offices. SGA manages its environmental impact by encouraging positive behaviors. SGA makes best efforts to recycle paper, plastics, and any other renewable materials. The firm provides reusable bottles to all employees for everyday use and resides in a Leadership in Energy and Environmental Design (“LEED”) certified green building. LEED buildings generate less waste, save energy, water, and support human health. At least annually, SGA participates in an e-waste disposal drive.

Furthermore, SGA values diversity in the workforce and suppliers. SGA is a Women’s Business Enterprise National Council (“WBENC”) certified woman owned and controlled business. Our hiring process is designed to seek diversity of thought, experience, background, and beliefs. Nearly 50% of the firm is female or comes from diverse backgrounds and these individuals span across SGA team ranks and responsibilities. SGA’s innovative and inclusive culture is essential to deliver superior results for our clients. Embracing our diversity means that we have a wider range of ideas and creativity, fresh perspectives, and willingness to challenge the status quo, all of which create a culture of innovation. Moreover, SGA has historically placed approximately 20% of total firm level brokerage with Minority, Women, and Disadvantaged Business Enterprise (“MWDBE”) firms and strives to utilize minority and women-owned firms as suppliers of professional services where feasible.

SGA believes education is at the heart of change and our Speaker Series, our Learning & Development program and our Advisory Board seek to educate our employees by inviting experts in responsible investing and ESG analysis as well as other topics prompted by employee interests such as training in data visualization and Python/SQL coding. SGA further encourages it employees to participate in conferences and attain specialty certifications that support their development and increase expertise throughout the organization.


Within the Community

SGA seeks to encourage employee engagement with the community through our SGA Cares Initiative, which has supported programs such as the Hidden Genius Project and the Neighborhood Youth Association via Investors in Education. As part of the SGA Cares Initiative, firm employees have also participated in SGA’s Day of Service by giving back to local communities through organizations such as The Boys and Girls Club, Second Harvest Food Bank, Girl Scouts of America, the YMCA, and Youth Employment Services as well as organizations and charities chosen by individual employees.


Within Organizations

In May 2020, SGA became a Signatory of the United Nations Principles for Responsible Investment (“UN PRI”), and formalized our commitment to their six Principles for Responsible Investment:

         1.  We will incorporate ESG issues into investment analysis and decision-making processes.
         2.  We will be active owners and incorporate ESG issues into our ownership policies and practices.
         3.  We will seek appropriate disclosure on ESG issues by the entities in which we invest.
         4.  We will promote acceptance and implementation of the Principles within the investment industry.
         5.  We will work together to enhance our effectiveness in implementing the Principles.
         6.  We will each report on our activities and progress towards implementing the Principles.


As a PRI Signatory, implementing these principles means contributing to the development of a more sustainable global financial system. 


See our full Responsible Investment Policy here