ESG at Wasatch

At Wasatch Global Investors the thoughtful incorporation of responsible investment practices, including the analysis of Environmental, Social, and Governance (“ESG”) factors, is integrated into the investment due diligence process to reduce risk and maximize long-term returns.

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Responsible Investment Approach

A hallmark of Wasatch’s investment approach is extensive independent due diligence on every investment. This approach naturally aligns with integrating ESG factors. We believe that each successful investment involves analyzing a mosaic of factors, both financial and non-financial, to identify key drivers of risk and return.

Wasatch’s responsible investment approach centers around four key pillars: Integration, Specialized Due Diligence, Engagement, and Compliance & Oversight.

Integration

Wasatch integrates material ESG factors during initial and ongoing investment due diligence. Portfolio Managers and Analysts leverage the Sustainability Accounting Standards Board’s (SASB) Standards to guide analysis and promote consistent integration. The team also has access to portfolio and constituent level ESG metrics, provided by third party ESG data providers. Finally, ESG training sessions are hosted for team members quarterly.

Specialized Due Diligence

Wasatch employs a dedicated ESG Team that supports ESG integration by providing specialized due diligence on high priority holdings. The ESG Team also monitors and reports portfolio and constituent level ESG metrics from third party ESG data providers on an ongoing basis. These metrics include ESG scores, Global Compact status, controversies, carbon and environmental data, and potentially controversial revenue sources.

Engagement

Wasatch engages in two-way dialogue with company management teams with the goal to better understand the materiality and mitigation of ESG risks. Proxy voting may be utilized to encourage appropriate corporate governance and polices if available and financially prudent. Wasatch does not seek to be an activist investor.

Compliance & Oversight

Wasatch’s ESG Committee monitors and directs the firm’s ESG efforts with oversight by the Board of Directors. The ESG Committee is represented by senior staff from all areas of the firm, including portfolio management and executive leadership. All ESG efforts are audited as part of the Annual Compliance Program Review, in accordance with the firm’s ESG & Responsible Investment Policy.

integration due diligence engagement compliance

Material Factors

ESG factors that may be considered in Wasatch's ESG due diligence process include:

ENVIRONMENTAL

Focus on resource management, sustainability of operations, pollution, and reporting

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SOCIAL

Focus on human rights, labor relations, product quality and safety, data privacy, workplace conditions, and reporting

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GOVERNANCE

Focus on long-term client and shareholder value creation, transparency, oversight, and accounting practices

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Thoughtful Incorporation of Industry Standards

Wasatch applies the following standards, principles, and guidelines to its responsible investment approach:

Wasatch ESG Milestones

Over the last several years, Wasatch has formalized the integration of ESG initiatives in the investment process

2014

  • Retained third-party ESG data provider

2015

  • Published initial ESG Statement

2017

  • Established ESG Committee

2018

  • Became a UNPRI Signatory
  • Published ESG Beliefs Document

2019

  • Added ESG to investment due diligence template

2020

  • Assigned dedicated ESG resource
  • Completed first UNPRI assessment
  • Issued Modern Slavery Statement
  • Joined ICI ESG Taskforce

2021

  • Became TCFD Supporter
  • Joined IAA ESG Committee
  • Established ESG & Responsible Investment Policy
  • Assigned second dedicated ESG resource

2022

  • Adopted OECD Guidelines
  • Published inaugural TCFD Report
  • Added ESG data providers
  • Updated Proxy Policy with diversity criteria

Dedicated ESG Team

Candace Dechant, CFA

Candace Dechant, CFA

Lead ESG Analyst
Carly Carrier

Carly Carrier

ESG Analyst

Want to know more?

Contact us for additional information

Wasatch ESG & Responsible Investment Policy available upon request

Proxy Policies & Records

Risk and Disclosures

The foregoing is provided for informational purposes only to highlight the practices of Wasatch Global Investors related to ESG integration at the firm and in the investment research process. While Wasatch believes ESG metrics are important factors to consider during its research process, these factors should not be taken in isolation but should be viewed within the broader context of the stock evaluation and selection process. Adherence to global ESG frameworks does not necessarily alter long-standing investment strategies.