How does Mondrian Incorporate ESG?

Mondrian believes that the inclusion of ESG factors is essential in understanding risk-adjusted returns for both dedicated ESG and standard strategies.

Mondrian’s long-term, fundamental research process has always demanded that analysts strive to consider all material risks that could influence a security’s valuation, including those factors rooted in environmental, social and governance concerns.

Implemented in a systematic and consistent manner, ESG incorporation can be effectively integrated into a value investment philosophy.

The willingness of value investors to take a position in a broad range of companies and industries – including those that typically score very poorly with regards to certain ESG characteristics – has been taken by some to mean that a value investment philosophy is incompatible with the incorporation of ESG factors.  This needn’t be the case as demonstrated by Mondrian’s integrated approach to incorporation in our equity and fixed income strategies.  In particular, Mondrian recognizes that climate change must be considered as a risk to the long-term future of economies and individual business, and addresses these concerns through its bottom-up analysis.

Analysts adopting a holistic approach, rather than ESG specialists operating in silos, create greater efficiency and context, focusing on the most material issues for a company.

Mondrian has always believed it is the responsibility of all investment professionals to understand and incorporate the impact of environmental, social and governance factors on our present and potential investments, and their sustainable profitability.

Mondrian’s ESG Steering Committee, which is comprised of senior representatives from each of the investment and client service teams and chaired by a Mondrian Board member, sets and reviews firm-wide objectives and initiatives to ensure that our resources and investment staff are capable of meeting ongoing developments associated with ESG-related issues.

Equity Strategies
Fixed Income Strategies
Dedicated ESG Strategies
A Value Approach to ESG –
The Mondrian Equity Perspective
A Value Approach to ESG –
The Mondrian Fixed Income Perspective

In recognition of our continued commitment to the integration of material ESG factors throughout the investment process, Mondrian is a signatory to the United Nations supported Principles for Responsible Investment (PRI). Additionally, Mondrian is a UK Stewardship Code signatory and provides reporting as required by the Shareholder Rights Directive.


Mondrian Firm-wide ESG Investment Policy Mondrian Proxy Voting Policy & Procedures Mondrian UK Stewardship Code Statement Mondrian SRD Statement PRI Reports

To learn more about ESG integration in our investment process or our dedicated ESG products, please contact Paul Ross, President, Client Services in our Philadelphia office at paul.ross@mondrian.com or Russell Mackie, Global Head, Client Services & Marketing in our London office at russell.mackie@mondrian.com.