ESG is in Our DNA
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For some investors, ESG is about values, for others it’s about value. For us, it’s about both.
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ESG is in Our DNA

What is ESG?

ESG refers to an analysis of material environmental, social, and governance (ESG) factors that can impact a company’s investment potential and risk profile.

For some investors, ESG is about values, for others it’s about value. For us, it’s about both.

ENVIRONMENTAL

  • Emissions, Water & Resource Management
  • Climate Resilience

SOCIAL

  • Work Place Standards
  • Diversity & Inclusion

GOVERNANCE

  • Sustainability Reporting
  • Board Gender Diversity

Values or Value?

Investors use ESG for different reasons:

Business

  • Protect the dividend
  • Long-term investment strategy
  • Enhanced risk assessments

Values

  • Ethical and/or religious perspectives
  • Improve business and market practices

Legacy

  • Impact on next generation
  • Stewardship of assets

Environment

  • Concerns about pollution and resource management
  • Sustainable business models

Social

  • Recruitment/retention of a competitive, diverse, talented workforce
  • Good corporate citizenship

Governance

  • Protection of shareholders
  • Best-practices management and board selection

Sustainable Income Opportunities™

Since the launch of our first strategy in 1991, Miller/Howard Investments has integrated ESG criteria into our investment process.

We take a critical and thorough look at the totality of a company, which includes both detailed financial analysis and robust evaluation of the company’s ESG profile.

ESG Analysis and Integration:

  • Helps protect shareholder value and income
  • Identifies risks and opportunities
  • Invites active ownership

Robust Financial Analysis
+ Robust ESG Analysis
+ Risk Assessment
= Potential Income Growth

ESG + Income: An Integrated Approach to Investing

  • More Stability and Less Risk
    Companies with high ESG scores, in general, offer more stability and less risk—because companies avoiding or suitably managing ESG risks tend to incur less liability.
  • Enhanced Shareholder Value
    Financial stability, the continued ability to pay dividends, efficiencies and innovation are often benefits of strong ESG management.

ESG in the Real World

What is the company’s strategy to prevent costly incidents?

  • Is management incentivized to make decisions that protect the dividend?
  • Does management ensure adoption of best-practice safety programs and disclosures, preventing damaging errors and costly fixes?

Shareholder Engagement

A voice at the table. The power of the engagement process is to bring concerns to the attention of company management and other shareholders, resulting in dialogue and/or the redress of concerns.

Our engagement goals:

  • Represent our investors and protect their assets
  • Mitigate risk
  • Promote shareholder value

Engagement outcomes include:

  • Increased transparency and accountability
  • Better reporting and practices
  • Increased board gender diversity

Our ESG Guiding Values

  • Exemplary governance
  • Strong disclosure and resource management
  • Sustainability
  • Good corporate citizenship

Proxy Voting

We actively review and vote all proxy ballots according to our ESG-aligned proxy voting policy.

Proxy voting is an important opportunity to weigh in on critical corporate governance issues that are put to a vote at a company’s annual general meeting.

We believe that strong ethical management of environmental, human, and financial capital is good for business and investors.

Our Commitment to ESG

We have been a proud signatory to the United Nations Principles for Responsible Investment (UNPRI) since 2007.

Our other partnerships include:

  • Ceres
  • CDP (formerly the Carbon Disclosure Project)
  • Climate Action 100+
  • Thirty Percent Coalition
  • Interfaith Center on Corporate Responsibility (ICCR)
  • The Investor Stewardship Group
  • Women’s Empowerment Principles (WEPs)

ESG Research & Advocacy Team

Luan Jenifer, President
Nicole Lee, Lead ESG Analyst
Patricia Karr Seabrook, Shareholder Advocacy Coordinator
Daniel Lee, ESG Research Associate

© 2019 Miller/Howard Investments, Inc.

Investment products: are not FDIC insured - May lose value - Are not bank guaranteed

Opinions and estimates offered constitute Miller/Howard Investments' judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. All investments carry a certain degree of risk, including possible loss of principal. It is important to note that there are risks inherent in any investment and there can be no assurance that any asset class will provide positive performance over any period of time. The material may also contain forward-looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass.

Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer’s board of directors, and the amount of any dividend may vary over time. Dividend yield is one component of performance and should not be the only consideration for investment.

The information above is from sources deemed to be reliable and is provided strictly for the convenience of our investors and their advisors. These materials are solely informational. Legal, accounting and tax restrictions, transaction costs, and changes to any assumptions may significantly affect the economics of any transaction. The information and analyses contained herein are not intended as tax, legal, or investment advice and may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal, investment, or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability. Any investment returns — past, hypothetical, or otherwise — are not indicative of future performance. Investment Decisions: Do not use this report as the sole basis for investment decisions. Do not select an allocation, investment discipline, or investment manager based on performance alone. Consider, in addition to performance results, other relevant information about each investment manager, as well as matters such as your investment objectives, risk tolerance, and investment time horizon.

Past performance does not guarantee future results.

DISCLOSURE

Investment products: are not FDIC insured - May lose value - Are not bank guaranteed

Opinions and estimates offered constitute Miller/Howard Investments' judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. All investments carry a certain degree of risk, including possible loss of principal. It is important to note that there are risks inherent in any investment and there can be no assurance that any asset class will provide positive performance over any period of time. The material may also contain forward-looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass.

Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer’s board of directors, and the amount of any dividend may vary over time. Dividend yield is one component of performance and should not be the only consideration for investment.

The information above is from sources deemed to be reliable and is provided strictly for the convenience of our investors and their advisors. These materials are solely informational. Legal, accounting and tax restrictions, transaction costs, and changes to any assumptions may significantly affect the economics of any transaction. The information and analyses contained herein are not intended as tax, legal, or investment advice and may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal, investment, or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability. Any investment returns — past, hypothetical, or otherwise — are not indicative of future performance. Investment Decisions: Do not use this report as the sole basis for investment decisions. Do not select an allocation, investment discipline, or investment manager based on performance alone. Consider, in addition to performance results, other relevant information about each investment manager, as well as matters such as your investment objectives, risk tolerance, and investment time horizon.

Past performance does not guarantee future results.