ESG Approach
At NXG, we believe that environmental, social and governance (“ESG”) factors are essential when acting on behalf of our clients. NXG has developed and adheres to a Responsible Investing Policy that advises the firm’s approach to portfolio construction and guides the integration of ESG factors into the investment process.
ESG Committee
NXG Investment Management has a dedicated ESG Committee that sets policy for the firm and its employees, oversees the integration of ESG into our investment process, and keeps up to date on ESG best practices. This committee is composed of a broad representation of the firm to help ensure we are considering ESG from various viewpoints, including our CIOs and staff from compliance and risk management.
ESG Integration
Consideration of ESG issues is an integral step in our overall investment process. We source both company-produced and independent third-party data and analysis to identify ESG-related risks and opportunities and monitor trends in performance. We actively engage with companies to better understand their ESG-related efforts and encourage disclosure to help us make well-informed investment decisions. Our research feeds into a set of customized in-house ESG metrics that allow us to exclude sector and size bias in evaluating companies.
