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Responsible Investing

Cardinal has ESG investing experience dating back to at least 1998. In 2023, the firm formally aligned with SASB standards and became a signatory to the UN PRI. ESG research and assessment are done internally by the primary research analyst for each company. The investment team integrates financially material ESG factors into its fundamental analysis while seeking investments that deliver long-term capital growth with reduced risk of loss. Companies that responsibly integrate ESG factors into strategic plans can enhance value and reduce risk. Cardinal’s insights on ESG factors for investments are often more timely and complete than what others can gather solely from third-party rating agencies, and as an active owner the investment team engages with portfolio companies’ managements and boards on issues that materially affect shareholder value. When engaging with a company, the team has clear objectives and monitors progress. Recently, public disclosure, capital structure, and executive compensation have been increasing areas of focus for company interactions as they often can impact valuations.