The Radiant Way
Redefining Sustainability
At Radiant, our approach to sustainability is intentional and motivated exclusively by our desire to deliver the best risk-adjusted returns.
Our definition of ‘sustainability’ requires an understanding of traditional investment measures like profitability, earnings growth, and valuation, as well as ESG and impact measures like natural resource use, labor relations, ethics, products, and shareholder protections. Put simply, we are interested in asking and answering the question, ‘which firms will be the leaders of the future?’ Our thesis is that, by better understanding the true set of threats and opportunities facing companies, we will have an advantage that will lead to better investment performance. And by investing in and supporting companies that are truly sustainably-minded, our investment practice will also benefit the environment and society.
We’re in a transformative and transitional period with respect to how companies operate and how consumers respond —the standards are higher and there is no place to hide. It is our conviction that delivering better long-term ‘sustainable’ results, requires identifying the companies that will be on the right side of change, companies that will be the architects of their own destinies during a time of upheaval, companies that will fight to stay or even become relevant in a future that will look very different than the past.
We believe that the leaders of tomorrow will be those that can profitably pivot to ‘what’s next’.
Proprietary Approach to ESG and Impact
Our purpose-built assessment of company-level ESG and impact attributes is unique, forward-thinking, and most importantly, results-driven. A key distinction is our focus on companies that are evolving with respect to their ESG bona fides. We are just as interested in the ESG leaders of tomorrow as those of today. And importantly, we necessarily treat ‘impact’ as distinct from ESG.
Our adaptive ESG approach evaluates the risks and opportunities facing companies through three important perspectives:
We see a bigger picture. Evaluating the prospect of real change means looking outside of the normal information angles. We intend to be known and respected for a more comprehensive and robust approach to evaluating ESG and impact investment potential which means moving beyond a simple exclusions-based philosophy and away from a perspective anchored on ‘ESG Ratings’ to a more meaningful assessment of how a company’s actions, products, and path of travel gives rise to real-economy effects. We bring an ‘impact mindset’ to public equity investing — a necessity if we are to anticipate the changes arising from the move to a stakeholder orientation.
These views inform our concept of true sustainability, allowing us to identify, and take positions in companies that we believe will be tomorrow’s leaders.
Voting and Engagement
As good stewards of our clients’ capital, we regard it as our responsibility to vote our shares and engage with companies directly. Information captured through our systematic engagement system is added to our proprietary ESG Mosaic™ data platform, further enhancing our understanding of the threats and opportunities facing the companies in which we might invest.
ESG and Impact Reporting
We are committed to robust and transparent reporting, focused on detailed KPIs and real-economy outcomes. In addition to covering our philosophy and approach to ESG and impact, our Annual Sustainability Report provides additional information including Radiant’s ESG and impact policies, definitions and proof statements, our proxy voting record, and our engagement program.
RADIANT SUSTAINABILITY REPORT 2023
