ESG Considerations and Sustainable Investing

A material impact area for our clients

Our Goal

We believe that integrating material ESG factors as part of our investment approach helps us to better manage risk and enhance returns. Additionally, we partner with our private clients to understand and align their investments and plans with their vision and values, employing BBH and third-party investment strategies, which may include Socially Responsible Investing (SRI) and ESG approaches.

As the world continues to evolve, ESG and sustainability issues have become increasingly important to society, our stakeholders, and investment managers across the globe – including BBH. We believe investment strategies that reflect certain ESG attributes play an important role in helping to meet values-based goals while enabling us to preserve and grow our clients’ capital over long periods of time.

We provide investment management services to individual and institutional clients around the world – embedding ESG criteria in our investment process for BBH equity strategies, corporate bonds, municipal debt, and structured products. Evaluation of ESG factors is a critical part of our investment philosophy and core principles that aid us in effectively assessing the long-term sustainability and durability of these strategies. ESG criteria are embedded within our analysis and decision-making process within these strategies, and every new investment is evaluated through rigorous fundamental analysis, which includes ESG-considerations.1

As an advisor to private business owners, individual families, and endowments and foundations, BBH focuses on helping clients achieve sustainable outcomes as they deploy their resources to influence the issues important to them. Now, more than ever, values, definitions, and goals related to sustainable investing are a focus for many clients, but also highly personal. Since there’s no one-size-fits-all solution, we view sustainable investing not as a product, but as an approach.

To help clients navigate these complex decisions, BBH starts each relationship with a robust conversation about each client’s values and objectives. We then use those values as our guiding principles, advising our clients in their pursuit of thriving families, sustainable portfolios, and impactful philanthropy – according to their definition of success. As part of our diligence process, we also engage 100% of our investment manager partners on ESG considerations.

To learn more on ESG Integration in Investment Management, read our ESG Position Statement. To learn more on ESG integration in BBH Capital Partners, read our BBHCP ESG Policy Statement.

In addition to identifying financially material risks and opportunities when building and managing portfolios, an important part of our investment process is our engagement with companies and issuers.

To learn more about how we engage with companies and issuers, read our Investment Management Investment Stewardship Policy.

To learn more about how we consider climate in our investment process, read our Investment Management Climate Change Statement.

To learn more on how we advise clients on their sustainable investing and ESG approach, read our Sustainable Investing and ESG homepage.

UN Sustainable Development Goal Alignment

Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all

UN Sustainable Development Goals

Core Program Components

  • Our investment process integratesion of ESG-related factors in our investment process across BBH equity strategies, corporate bonds, municipal debt, and structured products.
  • Read our ESG Position Statement.

  • We offer engagement with our clients about their goals, market trends, and how ESG criteria is incorporated into BBH’s investment process.

  • We offer educational sessions on ESG integration and best practices on a regular basis.
  • We collaborate with the Executive Sustainability Council and across lines of business on the ESG landscape and what it means to BBH, our clients, and our stakeholders.

  • We participate in ESG conferences and communicate with specialist research firms, thought leaders, and our international network of investors.

  • We are committed to the evaluation of ESG factors as part of our investment research process because it helps us effectively assess the long-term sustainability and durability of the companies we invest in.
  • We take a bottom-up fundamental approach to investing, identifying businesses that have the potential to compound capital through market cycles and make effective management decisions that lead to strong governance, key stakeholder relationships, and excellent social practices.
  • We help clients realize socially responsible investment (SRI) mandates through portfolio customization, ongoing analysis, shareholder engagement, and integration of MSCI ESG Research data points through a sustainable portfolio optimization process.
  • Learn more about our approach to sustainable investing.

  • Our proprietary values-based planning framework helps clients uncover their values and use them to make decisions about how wealth is invested, saved, spent, and given away.
  • We work with families to create customized programs that demonstrate how how their values can drive decision-making in regards to investing, planning, and charitable giving. 
  • BBH’s Center for Women & Wealth engages and supports women in the creation and management of wealth to create a dynamic and inclusive environment for conversations about family, wealth, and values.
  • Learn more about Values-Based Planning.

  • We strive to help clients become strategic philanthropists by defining the role of philanthropy in the client’s life and the estate plan, setting structure to maximize impacts, creating a framework for governance/administration, and crafting a strategic plan to design grants and measure impact.
  • We support the process by helping donors investigate innovative ways of structuring charitable activities, including hybrid vehicles.
  • Learn more about Philanthropic Advisory.

  • PRI

    BBH Investment Management* became a signatory in 2020

  • 100 %

    of third-party managers evaluated against ESG criteria in annual reviews

  • 65 %

    BBH Investment Management AUM with ESG integration

  • 81 %

    of AUM managed by investment managers with an ESG policy statement

* BBH combined its Private Banking and Investment Management lines of business into a single line of business as of January 1, 2024. As a result of the combined businesses, the BBH signatory to the UN PRI will change in 2025.

Based on 2023 data

2023 Stewardship Report

BBH’s Sustainability efforts are built on a foundation of transparency and accountability and are made stronger by the input and counsel of all our stakeholders. In the pages that follow, we invite you to take a comprehensive and holistic look at the progress we made in 2023 and learn how BBH is tapping into its unique market position, skills, and capabilities to create a more sustainable society in collaboration with our clients, our people, and our communities.

Read Report

1A less favorable ESG profile may not preclude the manager from investing in a company, as the consideration of ESG factors is not more influential than the consideration of other investment criteria.

Investing in securities that meet ESG criteria may result in the fund forgoing otherwise attractive opportunities, which may result in underperformance when compared to funds that do not consider ESG factors.  A less favorable ESG profile may not preclude the Adviser from investing in a company, as the consideration of ESG factors is not more influential than the consideration of other investment criteria.

Brown Brothers Harriman & Co. (“BBH”) may be used to reference the company as a whole and/or its various subsidiaries generally. This material and anyproducts or services may be issued or provided in multiple jurisdictions by duly authorized and regulated subsidiaries. This material is for general information and referencepurposes only and does not constitute legal, tax or investment advice and is not intended as an offer to sell, or a solicitation to buy securities, services or investment products.Any reference to tax matters is not intended to be used, and may not be used, for purposes of avoiding penalties under the U.S. Internal Revenue Code, or other applicable taxregimes, or for promotion, marketing or recommendation to third parties. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed,and reliance should not be placed on the information presented. This material may not be reproduced, copied or transmitted, or any of the content disclosed to third parties,without the permission of BBH. Pursuant to information regarding the provision of applicable services or products by BBH, please note the following: Brown Brothers HarrimanFund Administration Services (Ireland) Limited and Brown Brothers Harriman Trustee Services (Ireland) Limited are regulated by the Central Bank of Ireland, Brown BrothersHarriman Investor Services Limited is authorised and regulated by the Financial Conduct Authority, Brown Brothers Harriman (Luxembourg) S.C.A is regulated by the Commissionde Surveillance du Secteur Financier. All trademarks and service marks included are the property of BBH or their respective owners. © Brown Brothers Harriman & Co. 2021.All rights reserved. FIRM-00486-2024-01-10

 

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You are required to read the following important information, which, in conjunction with the Terms and Conditions, governs your use of this website. Your use of this website and its contents constitute your acceptance of this information and those Terms and Conditions. If you do not agree with this information and the Terms and Conditions, you should immediately cease use of this website. The contents of this website have not been prepared for the benefit of investors outside of the United States. This website is not intended as a solicitation of the purchase or sale of any security or other financial instrument or any investment management services for any investor who resides in a jurisdiction other than the United States1. As a general matter, Brown Brothers Harriman & Co. and its subsidiaries (“BBH”) is not licensed or registered to solicit prospective investors and offer investment advisory services in jurisdictions outside of the United States. The information on this website is not intended to be distributed to, directed at or used by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Persons in respect of whom such prohibitions apply must not access the website.  Under certain circumstances, BBH may provide services to investors located outside of the United States in accordance with applicable law. The conditions under which such services may be provided will be analyzed on a case-by-case basis by BBH. BBH will only accept investors from such jurisdictions or countries where it has made a determination that such an arrangement or relationship is permissible under the laws of that jurisdiction or country. The existence of this website is not intended to be a substitute for the type of analysis described above and is not intended as a solicitation of or recommendation to any prospective investor, including those located outside of the United States. Certain BBH products or services may not be available in certain jurisdictions. By choosing to access this website from any location other than the United States, you accept full responsibility for compliance with all local laws. The website contains content that has been obtained from sources that BBH believes to be reliable as of the date presented; however, BBH cannot guarantee the accuracy of such content, assure its completeness, or warrant that such information will not be changed. The content contained herein is current as of the date of issuance and is subject to change without notice. The website’s content does not constitute investment advice and should not be used as the basis for any investment decision. There is no guarantee that any investment objectives, expectations, targets described in this website or the  performance or profitability of any investment will be achieved. You understand that investing in securities and other financial instruments involves risks that may affect the value of the securities and may result in losses, including the potential loss of the principal invested, and you assume and are able to bear all such risks.  In no event shall BBH or any other affiliated party be liable for any direct, incidental, special, consequential, indirect, lost profits, loss of business or data, or punitive damages arising out of your use of this website. By clicking accept, you confirm that you accept  to the above Important Information along with Terms and Conditions.

 
1BBH sponsors UCITS Funds registered in Luxembourg, in certain jurisdictions. For information on those funds, please see bbhluxembourgfunds.com



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