
Comments from a month in China
June 8, 2023 | Global Alpha Capital Management
Navigating China’s evolving economy: Discovering hidden opportunities amid challenges.
As part of our ongoing bottom-up research, we use an internally designed methodology to integrate ESG factors into our investment process.
Idea Generation
Use measures of profitability, revenue growth, and balance sheet strength. Global Alpha does not use negative screening.
Investment themes selection
Helps the team focus on companies expected to benefit from long-term secular growth trends consistent with ESG compliance.
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.
Valuation
Incorporate score into valuation tools through adjustments to discount rates.
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.
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 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.