August 31, 2020
Dalton Investments has become a signatory to Climate Action 100+, which is an investor initiative to ensure that the world’s largest corporate greenhouse gas emitters take necessary action on climate change. Through this initiative, more than 450 investors with over $40 trillion in assets collectively under management are engaging companies to:
- Curb emissions
- Improve governance
- Strengthen climate-related financial disclosures
As long-term focused investors, we take our role seriously and actively engage with company management in order to maximize risk adjusted returns for our clients. It is our belief that understanding the environmental risks associated with target companies is essential for assessing the long-term risk-adjusted return potential of an investment. We also believe that improving company governance, curbing emissions and strengthening disclosures increases this risk-adjusted return potential, whilst also serving to help tackle the systemic risk that climate change represents. For more information on Dalton’s sustainable investment philosophy please click here.
More information on the Climate Action 100+ initiative is available here.
Dalton’s Chief Research Officer Craig Mercer noted, “signing the Climate Action 100+ initiative is a natural step for Dalton, given our investment beliefs. Many of our portfolio companies are run by entrepreneurs whose focus on long-term success is already accompanied by sound environmental policies and disclosures, but where possible and when deemed beneficial to our investors, we actively engage with company management to promote positive change. We believe that dialogue with investee companies on these topics, both individually and as a part of a collaborative shareholder engagement effort, are ways to add value to our investment process.”
CEO Sarah Alfandari added, “there is an increasing desire from our clients to understand and assess the approach of their asset managers towards sustainable investment and how managers are acting on their behalf to address the systemic risk that climate change represents. We hope that Dalton’s signing of the Climate Action 100+ initiative further demonstrates our commitment to being an active steward of our clients’ assets.”