ESG Investing

We believe that material ESG factors will be determinants of success of the companies and countries in which we invest, and so by integrating ESG in our investment processes we will improve our long-term client returns.

GMO’s investment approach has always focused on identifying the most meaningful drivers of success and how we can use those insights to improve our returns. We consider ESG factors to be such drivers of success.

ESG helps us identify issuers who are working to address underappreciated ESG risks and, in turn, enhance their long-term profitability and command a higher premium into the future.

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Jeremy Grantham, GMO co-founder and Long-Term Investment Strategist

“Investing in sustainability means investing in our grandchildren, in our civilization, in our survival as a species. GMO has now made sustainability integral to our investment processes. All of us need to make sustainability integral to what we do: it is the fight for our very existence on this planet.”
GMO’s investment strategies and funds incorporate ESG considerations in differentiated ways appropriate to their respective investment styles. GMO’s investment teams may apply different ESG factors and integration processes, may apply their own weights to ESG factors and may use different selection, retention, realization and engagement strategies. These differentiated approaches are based on the extent to which sustainability risks are material to the strategy and its associated investment timeframe, the tools employed by each team to manage sustainability risk, varying degrees of access to relevant information on particular companies and, ultimately, each team’s own professional judgement. Please refer to the offer document for each GMO fund for information on how ESG factors are considered.