Socially Responsible Investing (SRI)

Rock Point believes that a company’s long-term financial performance benefits from healthy and sustainable relationships with its constituents - customers, suppliers, employees, community, shareholders, and the environment. Exclusionary and qualifying social screens are integrated into our process of examining potential investments. We create portfolios comprised of companies with outstanding environmental, social, and governance (ESG) profiles, companies that have demonstrated a growing commitment to corporate social responsibility, and companies that may be encouraged to do so through dialogue and advocacy efforts.

Exclusionary Screening.

Companies that derive a significant portion of their revenues from weaponry, alcohol, tobacco, or gambling are automatically eliminated as investment candidates.

Qualifying Screens.

Rock Point seeks out investments that directly or indirectly play a role in improving our communities and our world. These may include companies whose products or services benefit the environment or those that champion the equitable treatment of employees and the communities from which they derive natural and economic resources. We look favorably on companies that encourage open dialogue between management and shareholders, and that respond positively to requests for information and disclosure on financial, social and environmental issues.

We evaluate each company on a case-by-case basis, realizing that most companies have mixed social track records. We are encouraged when companies demonstrate a change for the better. If the social profile of a company is neutral but the trend is improving, we may make an investment in the company. In certain circumstances, we may be in a position to encourage further improvements through shareholder advocacy.

Shareholder Activism.

Shareholder activism, which may take the form of shareholder resolutions or organized proxy voting, can be a powerful tool to influence corporate behavior. Each year, shareholders vote on proposals affecting corporate governance as well as proposals regarding social or environmental issues. Given our understanding of the investments in each account, many clients elect to have Rock Point vote their proxy statements. If an issue of financial or social concern arises where we feel that a change in corporate direction is necessary, Rock Point may join other firms and co-file a shareholder resolution. As co-filers, Rock Point partners with advocacy organizations who engage in efforts to motivate the company to address the concerns.