INTEGRATED ANALYSIS
HOW INVESTORS ARE ADDRESSING
ENVIRONMENTAL, SOCIAL AND
GOVERNANCE FACTORS IN
FUNDAMENTAL EQUITY VALUATION

FEBRUARY 2013

Co-funded by the

PREPARATION OF THIS DOCUMENT
In September 2011 the PRI Initiative convened a working group of signatories to investigate how equity investors and analysts are integrating environmental, social and governance (ESG) analysis into their fair value calculations.
The members of the ESG Integration Working Group are:

Neil Brown Alliance Trust Investments - Working Group Chair

Bruce Kahn Deutsche Bank Climate Change Advisors

Andre Bertolotti Quotient Investors

Masahiro Kato Mitsubishi UFJ Trust and
Banking Corporation – observer

Paul Bugala Calvert Investments
Tony Campos FTSE Group

Erica Lasdon Calvert Investments

Cécile Churet RobecoSAM

Barb MacDonald British Columbia Investment
Management Corporation

Leanne Clements London Pension Funds Authority

Mary Jane McQuillen ClearBridge Investments

Jennifer Coulson British Columbia Investment
Management Corporation

Christie Stephenson NEI Investments

Lisa Domagala Solaris Investment Management
Ralf Frank DVFA (Society of Investment
Professionals in Germany)
Dr. Hendrik Garz Sustainalytics (previously employed by West LB)

Bryan Thomson British Columbia Investment
Management Corporation
Mike Tyrrell SRI-Connect
Stéphane Voisin Cheuvreux
Niamh Whooley Société Générale

Robert Hauser Zürcher Kantonalbank (ZKB)

Between March and May 2012 the ESG Integration Working
Group interviewed 17 brokers, research providers and investment managers to draw out best practice examples of integrated equity analysis. These case studies form the basis of this review (see Appendix 1 for a list of those interviewed and the research reviewed).

Thanks to the PRI ESG Working Group who have written this document in