Investing for a better future

We are driven by the belief that investing responsibly increases risk-adjusted returns while also contributing to creating a better future. Therefore, we aim to invest at least 90% of our portfolio in companies promoting environmental, social and governance values.

As a signatory of UNPRI and supporters of the Paris Agreement, Ridge Capital is dedicated to investing responsibly and reducing the impacts of climate change.  Our commitment is to implement sustainability practices and align our investments accordingly.

Identifying risks and opportunities

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 avoid sectors such as production of fossil fuels, tobacco and gambling. 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.

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.

Step 3: In-depth analysis

As a final step we conduct a detailed analysis of every company’s sustainability strengths and weaknesses. This qualitative deep dive approach give us a thorough understanding of potential risks. Only when we are convinced that these risks will not materialize do we proceed with an investment.