Realindex also benefits from the significant firm-wide resources dedicated to responsible investment research. We leverage this to gain access to a broad range of environmental, social and governance (ESG) research providers. This has enabled us to incorporate a range of responsible investing metrics and underlying historical data into our comprehensive factor library with global coverage. Access to this data has facilitated ESG research into customised client solutions, with a particular focus on the interaction between ESG awareness and Realindex portfolios.
We believe that voting on company resolutions is an important responsibility of any equity holder and we vote on company resolutions using the services of CGI Glass Lewis.
Some key examples of where we have incorporated and/or researched ESG overlays include:
- Analysing the outcome of penalising poorly ranked companies on both aggregate and individual ESG metrics.
- The relationship between governance and shareholder interests for closely held public companies.
- Penalising and/or rewarding companies based on their carbon footprint and that of their suppliers.