At any surf spot in the world, you can find a cadre of wetsuit-clad wave watchers scanning the horizon of the sea. Surfing, a sport unlike any other, demands an intricate understanding of the water and weather conditions. The interplay between tides and the underwater terrain determines the height, direction and formation of wave patterns.
At Comgest, we see the parallels between surfing and our own quality growth investment approach. Just as experienced surfers may wait hours before paddling out into the water and selecting a wave, we typically conduct years of fundamental research to determine whether a company meets our quality growth criteria. We seek companies that have exceptional longevity, visible growth, robust free cash flow, formidable barriers to entry, strong corporate culture and ESG credentials.
Environmental, social and governance (ESG) factors are integrated into our research, investment selection and portfolio management process. Like tidal patterns and swell size for surfers, ESG helps us discern what separates these quality companies from the rest. From our perspective, ESG provides us with an enhanced understanding of a company’s quality and long-term growth potential.
NO TWO WAVES ARE THE SAME
In recent years, a global patchwork of ESG regulation has taken shape as policymakers attempt to address issues including climate change, human rights or biodiversity. From industry-wide pledges to net zero targets, there has been a tidal wave of new ESG commitments, regulations and rules since the launch of the Paris Agreement in 2015, which aims to prevent global temperatures from rising above 1.5°C and has been signed by nearly every country.
Read the full ‘Sponsored Commentary’ article at the link below
Supporting documents
Click link to download and view these filesRiding ESG waves across the globe: the US and India in focus
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