Rockefeller Sustainability & Impact

Philosophy

A pioneer of sustainability and impact investing with over 30 years of experience, Rockefeller & Co.'s approach is based on two important tenets. First, adding sustainability criteria to an investment selection process does not require the sacrifice of financial performance. And second, sustainability works. Building on these tenets, Rockefeller works to buy companies that can profit from products, policies and practices that encourage solutions to major problems facing the world through innovation, reduced costs and increased efficiencies. Our investment decisions represent judgments about the future and, in this sense, we see ourselves as agents for our clients' aspirations.

Investment Process

Our investment process begins with the creation of a core global equity portfolio through a “fundamental bottom-up” process. Using a globally-driven process with broad representation criteria allows us to take into account critical macro- and microeconomic forces that affect all companies. However, what sets Rockefeller apart is that we focus our assessment on the materiality of the sustainability issues associated with an individual company’s business model and the intrinsic risks that arise from that business model.

As investors who place a high value on long-term returns, we believe that ownership brings with it responsibilities and we seek to represent clients who want to be engaged owners. Thus, we advocate for accountability and transparency in corporate operations and decision making. Furthermore, we deploy our investors’ capital to support progressive principles of corporate governance. Given this goal of impactful and proactive ownership, our assessment of companies considers six broad categories:

Governance
Products and Marketing
Workplace
Environmental Stewardship
Community
Human Rights

Ultimately, we look for the hallmarks of best practices which are:

  • Integration of sustainability into basic business strategy,
  • Involvement with sustainability at the Board level,
  • Use of leading-edge sustainability practices as a driver of innovation and growth,
  • Commitment to sustainability reporting on transparent metrics, and,
  • Responsiveness to stakeholder interests.

Making A Difference

We regularly engage in on-going sustainability discussions with senior managers of companies in our portfolios, occasionally in conjunction with clients and/or partner organizations. Dialogue is never meant to be adversarial and is maintained only as long as there is a realistic prospect of progress.

Over the years we have engaged companies on a broad range of issues such as separation of chair and CEO, risk management, executive pay practices, climate change, diversity, health and safety, marketing practices and human rights. Our dialogues have led to such results as increased board diversity and the issuance of corporate responsibility and sustainability reports.

We live in challenging times. We are beset on all sides by economic dislocations brought about by complex forces including globalization, politics and misalignments of interests. It is time for a new understanding. It is essential for all parties to realize that business and society are not adversaries, but rather inseparable and indispensable allies. Investor/owners are in the best position to be the bridge builders. Sustainability is not something that will be achieved overnight or easily or in the absence of good will. But it is the foundation of everything else we seek for ourselves and the future. We invite you to join us in advancing it.