Research & Due Diligence
Sustainable Investing Portfolios are comprehensive, disciplined, and diversified solutions designed for investors with environmental, social, and governance (ESG) priorities.
ESG Due Diligence Framework
Envestnet | PMC Research incorporates an additional layer of analysis within its comprehensive research and due diligence process to uncover high-conviction equity and fixed income managers that are meaningfully and systematically integrating environmental, social and governance (ESG) information into the investment process.

Explore our in-depth due diligence process:

1Manager Sourcing
2Multi-Factor Evaluation
3Team Appraisal
4Extensive Monitoring
Quality Investment Manager
ESG Governance & Policies
Learn More
ESG Integration in the Investment Process
Learn More
Social or Environmental Impact
Learn More
Engaging on ESG Issues
Learn More
  • Is there a dedicated ESG oversight function at the firm?
  • How is progress on ESG initiatives monitored over time, and how is success measured?
  • What is the firm’s overarching philosophy on sustainable investing?
  • What is the firm’s history with sustainable investing? How has the approach evolved over time?
  • Does the organization have firm-wide policy on ESG? If yes, how often is it reviewed?
  • In what parts of the investment process (security selection, portfolio construction, risk management, asset allocation) have ESG insights been integrated?
  • How does the team evaluate the materiality of ESG issues at the industry and company level?
  • What weighting do ESG factors have in the investment decision making process? How often are ESG factors reviewed for relevance? What ESG research and data is being accessed and leveraged?
  • Does the strategy employ exclusionary screens? If yes, what is the rationale for selecting these screens? What are the thresholds for a company to be flagged for involvement?
  • Does the manager report on the environmental and social outcomes of the portfolio on a regular basis?
  • Are the impact metrics used in reporting relevant to the strategy?
  • What is the framework for engagement on ESG specific issues? How are ESG issues identified as engagement topics?
  • How are ESG engagements prioritized, monitored and tracked over time? How does the process influence investment decisions?
  • Does the team advocate for better disclosure of ESG information and transparency?
  • Who oversees ESG engagement activities at the firm? Are ESG engagement activities outsourced?
Envestnet offers solutions across the entire spectrum of sustainable investing and allows advisors to search for strategies according to each of the following approaches:

Portfolio Attributes
Investment strategies that incorporate Environmental, Social and Governance (ESG) factors in the investment process or that actively engage with portfolio companies on ESG issues, including raising shareholder resolutions, proxy voting and direct company engagement.
Investment strategies that adhere to religious mandates (e.g. US Conference of Catholic Bishops investment guidelines, Sharia compliance, Jewish values).

Impact Themes
Investment strategies that focus on climate change. This may include investments in fossil-fuel-free, low carbon, climate solutions, clean energy, and green bonds, among others.
Investment strategies that focus on natural resource conservation. This may include investments in water sustainability, sustainable agriculture, and waste management, among others.
Investment strategies that focus on diversity, equity, and inclusion. This may include investments supporting human rights, social justice, and LGBTQ+ empowerment, among others.
Investment strategies that offer exposure to community-based investing. This may include investments in affordable housing, access to healthcare, education, and financial inclusion, among others.
Investment strategies that focus on health and wellness. This may include investments in healthcare services, nutrition, and education, among others.

The information, analysis, and opinions expressed herein are for general information only. Nothing contained on this webpage is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Investing carries certain risks and there is no assurance that investing in accordance with the portfolios mentioned will provide positive performance over any period of time. Investors could lose money if they invest in accordance with the portfolios discussed herein. Past performance is not indicative of future results.

© Envestnet. All rights reserved.