ESG Investing

 

RAFI Indices supports investors who wish to promote responsible environmental management, active social engagement, and good governance practices (ESG) with their investment choices.

We define the elements of ESG as practiced by an entity as follows:

Responsible Environmental Management

Performing as a good steward of the natural environment, measured using a broad array of environmental metrics.

Active Social Engagement

Managing relationships with employees, suppliers, customers, and the community with respect and with appreciation of diverse viewpoints.

Good Governance Practices

Focusing on long-term value creation and appropriately balancing the interests of a company’s many stakeholders.

Select Insights from Research Affiliates

DOWNLOAD

Read about the RAFI Diversity & Governance Index investment principles

DOWNLOAD

Research Affiliates' position statement on ESG investing

DOWNLOAD

Memo on US DOL bulletin regarding ESG Investing

research-affiliates

JANUARY 2019

The Winning Formula: Mission + Culture + Team

CEO transitions are a great time to focus on refining the enduring formula of a firm’s success. At Research Affiliates that formula has three equally important elements: mission, culture, and team. The result are win-win-win outcomes—that is, a win for our end investors, a win for our distribution partners, and a win for ourselves.

The Challenges Of Diversity Investing (email)

DECEMBER 2018

The Challenges of Diversity Investing

The business case for diversity is compelling, but the investment case for diversity is less clear-cut. We suggest, therefore, that investors who seek to promote diversity and its business benefits combine diversity with known drivers of excess returns.

APRIL 2017

Unlocking the Performance Potential in ESG Investing

By combining a tilt toward companies that display financial discipline and that embrace corporate diversity with the return engine of a fundamentally weighted portfolio, we believe investors in environmental, social, and governance (ESG)–related strategies have the opportunity to earn superior long-term risk-adjusted returns.