Creating a Better Future with Ridge Capital
We are convinced that investing responsibly increases risk-adjusted returns while contributing to creating a better future. Therefore, we focus to invest at least 90% of our portfolio (our goal is 100%) on companies promoting environmental, social and governance characteristics.
We go further than the extra mile. Our ESG assessment process surpasses industry norms and allows us to identify market risks and opportunities. Our three-step framework ensures that we only invest in companies meeting our criteria.
Step 1: Exclusion Criteria
We only invest in companies that are aligned with our values. Consequently, we have decided to exclude sectors such as production of oil and gas, tobacco and adult entertainment. Also, we have heavily limited our exposure to alcohol, gambling, coal and weapons production. By doing so, we also mitigate the higher default risks associated with these sectors. In addition, companies that are in breach of any of the ten principles of the UN Global Compact are excluded in our screening process.
We also align with and follow the exclusion lists provided by AP-fondernas Etikråd and Norges Bank Investment Management.
Step 2: ESG Rating
We have developed our own ESG rating system. This assessment ranges from dissatisfactory to exceptional, ensuring that all companies meet our minimum screening requirements. Furthermore, we invest in the companies that achieve the highest ESG rating or where we see the highest ESG potential. Our proprietary ESG rating system eliminates the dependence on third-party analysis. We gain deeper insights to make superior investment decisions. It gives us an edge.
Step 3: In-Depth Analysis
As a final step, the companies’ sustainability strengths and weaknesses are analysed in detail. Thanks to our qualitative deep dive approach, we gain a thorough understanding of the potential risks. Only when we are convinced that these risks will not materialize do we proceed with an investment.
As a signatory of UNPRI and a supporter of the Paris Agreement, Ridge Capital is dedicated to investing responsibly and reducing the impacts of climate change. We stand by our commitment to implement sustainability practices and align our investments accordingly. For more detailed information on how we incorporate sustainability into our operations, please refer to our sustainability disclosures.