Amalgamated Bank is pleased to announce the launch of ResponsiFunds,1 a suite of environmental, social, and governance (ESG) investment products designed to align investment and growth goals with organizational values and a vision of a better future. These funds were designed in collaboration with Invesco, one of the world’s largest independent investment firms. Invesco and Amalgamated collectively agreed that the objective of these vehicles was to provide market competitive investment performance while contributing to creating a more sustainable future without a trade-off.
The importance of intentional investment in social, climate, and gender equity business and opportunities to build a more just, sustainable, and inclusive future has never been clearer. ESG investments have been steadily increasing in popularity over the years, with more than a 42% growth since 2018.2 As sophistication in ESG investing has grown, so have standards of analysis, in screening, measurement, and reporting to accurately identify companies that positively excel in these additional screening practices. By applying our social justice values and partnering with mission-aligned industry experts, we will seek to screen ResponsiFunds to exclude private prisons, pipelines, weapons, oil sands, coal, tobacco, UN Global Compact non-compliant, Carbon Underground 200, and more, while also screening for areas of inclusion in ESG leadership.
When it comes to creating a comprehensive investment portfolio, we believe in a nuanced and bespoke approach with a focus on evergreen value generation. The six funds created as part of the ResponsiFunds suite are designed to be highly competitive and deeply issue-area-focused. This allows clients access to diverse and efficient investment ESG options to grow and provide their organizations with further resources needed to meet their specific mission. We believe that participating in ESG funds would enable investors to become more engaged advocates in driving change, becoming a partial benefactor for the companies or organizations that are committing themselves to sustainable practices that protect the environment and tackling social equity issues.
We developed an intentional and thematic approach to our ESG portfolio construction to provide exposure to specific issue areas that were built atop high-performing, high-quality ESG Indices. Three of these six thematic products focus on social equity, gender balance, and climate transition with a key eye to highlighting top performers in ESG grades against several filtering and rating systems. The latter three were created to provide access to the ESG bond and equities market touching on quality-rated and deeply vetted holdings. These products are designed to be responsive to several degrees of review and were created with the continuity of mission and performance in mind.
ESG investing is widely recognized as a strategy to aid in climate transition efforts. We also believe in intentional investment in solutions that purposely reach issue areas of racial injustice, gender diversity, and LGBTQ+ rights. We are at an unprecedented fracture point in history on both environmental and social fronts where it takes more than lip service to drive change. It requires taking action to become a propellant for change: ResponsiFunds are designed to provide access to invest in mission-led companies and effectively contribute to building a more sustainable and just world.
Learn more about ResponsiFunds here.
1 No representation is made that any of the investments described herein will or are likely to achieve their investment objectives. Future portfolio holdings are limited only by the offering documents; therefore, this information should not be construed as a representation of the portfolio’s likely holdings and should not form the basis of an investment decision. The information contained herein is provided for illustration and discussion purposes only and is not intended to be, nor should it be construed or used as an offer to sell, or a solicitation of any offer to buy, an interest in any of the funds or accounts which may only be made by means of confidential offering documents.
2 ESG investing now accounts for one-third of total U.S. assets under management - MarketWatch