Our methodology does not rely on scores or screeners, but rather on a collaboratively approach about ESG (Environmental, Social and Governance) factors in order to analyze the potential impacts our invested companies are subject to, as well as help improve operations, governance, and transparency standards. We believe in consistent results in the long run and are continuously evolving our analysis based on the environmental and social components of the companies in our investment universe.
We believe that a combination of qualitative and quantitative metrics is the best approach to understand the challenges and opportunities associated with our investments. The analysis of ESG factors is no different. We aim to measure the financial impacts of ESG factors on our invested companies, incorporating this data into our valuation models. This process is aligned with the international best practices for responsible investing.
On March 2019, Brasil Capital adhered to the Principles for Responsible Investment (PRI), an initiative created in 2006 by a group of 20 global investors in 12 countries in partnership with the United Nations.
This initiative seeks to understand the implications of environmental, social, and governance factors for the investments and help its international network of signatories incorporate these factors in their investment and ownership decisions. The PRI advocates for the long-term interests of its signatories, the financial markets, and economies, and ultimately the environment and society as a whole.