ESG Integration

Investment Process:

We believe our clients benefit from our rigorous, fundamental, bottom-up research process that couples the best thinking of our sector-specific analysts with the investment acumen of our experienced portfolio managers. We recognize that in many instances, the incorporation of Environmental, Social, and Governance (ESG) factors into our research process has the potential to enhance our ability to make better, more informed stock-selection decisions which, in turn, helps us deliver value to our clients. 

Considering fundamentally material ESG factors as part of our investment research process:

  • Improves evaluation criteria for new and existing holdings to ensure all fundamental drivers are considered
  • Enhances the new idea generation process
  • Enables a more complete assessment of risk

To address client-specific requirements, the firm has managed the Small Cap Select SRI (Socially Responsible Investing) strategy since 2003 and the ESG SMID Cap strategy since 2017.

Sustainability Initiatives at KCM

Our Commitment:

  • Continue to offset 100% of paper consumption with tree planting in reforestation projects.
  • Expanded use of energy-efficient lighting and motion sensors to reduce power consumption.
  • Continue to promote employee health and wellness through reimbursement programs.
  • Upgraded HVAC equipment to improve building heating/cooling efficiency.
  • Expanded conversion to electronic client statements, reducing paper consumption.
  • Implemented a company match for employee charitable contributions.
  • Provided laptops for local students shifting to a virtual school environment.
  • Established battery recycling stations to promote the ease of recycling for employees.
  • Upgraded and expanded electric charging stations for employee vehicles.

We are proud supporters of the Paris Climate Agreement & the Task Force on Climate-Related Financial Disclosures.


The Paris Agreement, often referred to as the Paris Accords or the Paris Climate Accords, is an international treaty on climate change, adopted in 2015. It covers climate change mitigation, adaptation, and finance.

The Task Force on Climate-Related Financial Disclosures provides information to investors about what companies are doing to mitigate the risks of climate change, as well as be transparent about the way in which they are governed.

The UNPRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors, and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.