At City Different Investments, we try to live up to our company’s name by actually investing differently. We believe the way we think about investing is, well, different from most other investment firms. And one way we think differently is our approach to ESG investing.
Too many investment vehicles use the buzzword without fully committing themselves to an ESG ethos. Our partnership with Change Finance is a testament to how seriously we take the mission of ESG investing. Through a separately managed account (SMA) offering, we’re providing investors with an authentic and personalized carbon-neutral ESG strategy that lives up to its name.
1. City Different Investments and Change Finance partner on a carbon-neutral ESG strategy
- The collaboration brings together two firms dedicated to offering genuine ESG investing opportunities.
- Together, we’re aiming to offer a truly authentic and personalized ESG investment option.
2. Our SMA offers personalization for investors
- SMAs allow for customization to meet the needs of financial advisors and their clients.
- Tailoring the ESG strategy to individual investors' preferences is more achievable with an SMA than an ETF.
3. Change Finance's unique approach uses ESG filters and 100-125 sub-metrics to evaluate companies
- Change Finance was founded in 2016 in response to more than $5 trillion of fossil fuel divestment commitments.
- Their rigorous evaluation process identifies companies managing toward sustainability. To do this, Change Finance drills down into granular data, company by company, to verify their respective ESG commitments.
4. One key example: working with ranchers to change grazing practices and restore grasslands
- Initial success with the lowest carbon footprint in the large blend space wasn't enough.
- Change Finance collaborated directly with ranchers to actively remove carbon from the atmosphere and return it to the soil.
5. Integration is the key to true ESG investing
- There’s a misleading nature to some ESG strategies, where a separate ESG team does not collaborate closely with the main investment team.
- At a large investment manager, the ESG team will often sit away from the other investment teams. They’ll research companies that other portfolio managers are already selecting for their portfolios — whether those portfolio managers agree that that work is important or not — and then they'll try to paint or advertise a broad-brush ESG flavor to those strategies. That feels disingenuous to us.
- At CDI, we take a far more holistic approach, baking in ESG considerations into almost every company evaluation we perform. It’s intrinsic to our strategy, not an afterthought that’s more marketing than guiding principle.
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