Responsible Investing

Integrated into our Process

The assessment of environmental, social, and governance (ESG) risks and opportunities is intrinsic to our fundamental analysis of every company under consideration and is integrated into each stage of our investment process. Our proprietary scorecard considers the potential consequences of 29 distinct ESG-related concerns (like carbon emissions, labor practices, and management-shareholder alignment) for each business’s sustainability.

See how ESG considerations are integrated
throughout our investment process by hovering over each step.

Grounded in Industry Expertise

Deep knowledge of each global industry’s distinctive structure helps us identify the relevant environmental and social issues. Analysts monitor these issues, such as health and safety (Materials companies), labor practices (Consumer Staples companies), or carbon emissions (Energy companies), using our proprietary Materiality Framework, which was adapted from the Sustainability Accounting Standards Board (SASB) Materiality Map.

Commitments to Transparency

As a signatory to the Principles for Responsible Investing (PRI) and the UK Stewardship Code, Harding Loevner leverages its own efforts to practice and promote sustainable investing. Harding Loevner also supports the Task Force on Climate-related Financial Disclosures (TCFD). Read our 2024 TCFD Report.

Active Ownership

Engaging Frequently

We regularly engage with company managements to discuss and seek to understand the potential impact of environmental, social, and governance risks on their long-term returns.

Promoting Sustainability

We encourage companies to adopt practices that foster sustainable growth and to consider issues like energy transition, diversity, and cybersecurity.

Read our Shareholder Engagement Policy

Exercising Voting Rights

We promote high standards of corporate behavior and disclosure in every vote we cast. Our clients can request their shares be voted according to their own values and priorities.

See our proxy voting record

Meeting Client Goals

We’ve applied our fundamental knowledge of companies to customize portfolios from our earliest days.

1989 (founding) Sustainability integrated in investment process
1994 First portfolios with Human Rights & Environmental exclusions
1995 First portfolios with Catholic Values & Public Health exclusions
2010 First portfolio with Islamic Values exclusions
2012 Incorporated Glass Lewis data to support proxy vote decisions
2013 Incorporated MSCI ESG data to improve screens
2017 First portfolio managed to ESG Index benchmark
2018 First portfolio with Best-in-Class mandate
2019 Global Equity ESG Composite established
2020 First portfolio managed to carbon targets
2021 First portfolio with ex-fossil fuels mandate
2022 Global Paris-Aligned & International Carbon Transition Equity strategies launched

Partnering with Clients

We tailor our approach to meet your specific responsible investing goals.

Values-Based Screening

Exclude from your portfolio certain businesses, like tobacco, alcohol, gambling or fossil fuels.

Best-in-Class Portfolios

Focus your portfolio on companies with particularly strong environmental or social profiles.

Environmental Targeting

Manage your portfolio according to targets for carbon emissions.

Customized Engagement

Engage on your behalf according to specific values, including those around emissions, diversity, and labor relations.

Directed Voting

Cast proxy votes for shares in your portfolio according to your values and priorities.

ESG Reporting

Provide customized reporting based on third-party metrics to meet your ESG reporting requirements.

30+
Years

experience in customized
ESG screening.

70+
Portfolios

managed for clients with custom
Environmental or Social requirements.

$7+
Billion

currently managed for clients with
specific ESG requirements.

Read more about Stewardship and Sustainability in our investment process:

Stewardship & Sustainability

August 2019