Environmental Social Governance
Socially Responsible Investing (SRI) is a commonly used phrase that describes the integration of environmental, social, and corporate governance (ESG) criteria with financial standards when making investment decisions. Miller/Howard Investments Inc. believes, as do many others, that this integrated approach provides a framework for achieving better long-term investment returns while building sustainable global economies and markets. Our first SRI strategy ("Better than Bonds", now Miller/Howard Infrastructure) debuted in 1991, giving us more than 25 years of experience unique among many asset managers.
We engage in rigorous analysis of companies using ESG criteria, establishing and maintaining individual company profiles both before and after investment.
Our initial, pre-investment ESG research involves an extensive process that utilizes exclusion and preference screens as well as case-by-case analysis. A company must pass this evaluation in order to be eligible for investment in our SRI portfolios. We view this layer of due diligence as an essential SRI risk-control measure.
Our second stage of research is conducted on all SRI holdings quarterly: We update the company profiles, looking for best practices on ESG markers (e.g. ethical, transparent governance and established principles of environmental stewardship). We use these profiles to monitor company progress on the markers, and to identify opportunities for commendation and engagement.
Our shareholder advocacy program is multi-faceted and goes beyond the profiling of companies: We participate in shareholder activism, carefully vote proxies, regularly publish a shareholder advocacy newsletter, and support organizations or managers leading shareholder resolutions whenever in alignment with our portfolio holdings and policies. (See our Proxy Policy, which explains how a client can obtain the voting history.) Learn more about Miller/Howard's recent shareholder resolutions and areas of interest.