Sustainability

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.

“Every art and every inquiry, and similarly every action and pursuit, is thought to aim at some good; and for this reason the good has rightly been declared to be that at which all things aim.”
~ ARISTOTLE

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.

What are We Looking For?

Management
Management
Focus on long-term value creation for all stakeholders versus focus on achieving short-term financial targets to increase the stock price
Products/Services
Products/Services
Differentiation through innovation, experience and customer service versus lowest price
Social/Environment
Social/Environment
Aiming to improve not only their operational efficiency but also their employee safety, environmental footprint and their engagement with their communities
Disclosure
Disclosure
Providing highly-transparent financial statements and conservative disclosure policies

Active Engagement

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.

Explore the investment philosophy at ACM