At MFS, sustainable investing encompasses ESG investment integration, proxy voting, and issuer engagement. This approach enables us to consistently identify companies that we believe exhibit sustainable, long-term competitive advantages. In our view, this is the foundation of a skillful active approach and it is essential to our sole purpose: to create value by allocating capital responsibly.
The MFS investment team relies on deep fundamental research, a long-term view and risk awareness to generate value for our clients. We integrate ESG information into our investment process across every portfolio we manage because environmental, social and governance factors represent material risks and opportunities that can, and frequently do, affect the value of the securities we own on behalf of our clients. In order for our investment professionals to consistently make sound investment decisions, they must consider all relevant factors when evaluating and selecting securities. ESG factors are as important to this process as any other information we consider.
ESG information improves the investment dataset, which leads to a more holistic understanding of risks and opportunities. Effectively identifying which factors are most material is the critical skill that enables active asset managers to add value for investors over the long term.