Global Alpha logo.

Responsible Investing

In-house fundamental ESG approach

At Global Alpha, we believe companies that operate with sound environmental, social, and governance (ESG) practices provide better investment opportunities.

As part of our ongoing bottom-up research, we use an internally designed methodology to integrate ESG factors into our investment process.

http://Plants%20in%20a%20city.
http://A%20truck%20trailer%20parking%20lot.

Idea Generation

Use measures of profitability, revenue growth, and balance sheet strength. Global Alpha does not use negative screening.

http://Someone%20holding%20a%20hose.

Investment themes selection

Helps the team focus on companies expected to benefit from long-term secular growth trends consistent with ESG compliance.

http://A%20women%20in%20lab%20clothing.

Quality analysis

Calculate an ESG score for each individual company through the internal collection of key ESG data points. Raw data on activities and products is gathered through various sources such as company websites, reports, meetings with management teams and our own ESG questionnaire.

http://Two%20people%20viewing%20small%20model%20or%20buildings%20and%20trees.

Valuation

Incorporate score into valuation tools through adjustments to discount rates.

         Associations

 

United Nations – backed Principles for Responsible Investment (UN PRI)

In October 2012, we became a signatory to the United Nations supported Principles of Responsible Investing (PRI) initiative, focusing on incorporating ESG factors into stock investment criteria.

Responsible Investment Association (RIA)

The Responsible Investment Association (RIA) of Canada is an association whose members believe that ESG issues should be factored into the selection and management of investments. In 2015, Global Alpha became a member of the RIA.

The Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD)

The TCFD’s mission is to develop voluntary, consistent climate-related financial risk disclosures for companies to use when providing information to investors, lenders, insurers, and other stakeholders. In April 2019, Global Alpha became a TCFD supporter.

Global Alpha ESG Guidelines and
Analysis Documents

Insights