ESG Policy Statement.
118 West Capital Management takes great pride in having an established ESG policy that serves as the basis for our investment decisions.
Our investment strategy emphasizes the “E” in ESG.
We use positive screening to find companies that make specific, positive, measurable, and significant contributions to combating climate change. The most relevant business models include renewable energy generation, energy storage which maximizes renewable energy on the grid and in distributed locations, electric vehicles, and energy efficiency products and services.
We use negative screening to identify companies whose primary business contributes to climate change, such as power generation from fossil fuels. When the risk-reward tradeoff is deemed appropriate, we take short positions in such companies, thus doubling down on our bet on the transition towards a clean energy future.
Our internal ESG checklist is used to evaluate every long investment opportunity to determine the company’s strengths with respect to combating climate change.
We will be active supporters of ESG related matters—Our website, blog, and social media platforms promote discussion of topics related to Cleantech and the transition of the energy industry away from fossil fuels.
We will exercise our shareholder voting rights to support ESG-related principles, when such opportunities arise.
Our ESG Policy will be updated as required to remain aligned with the best industry standards, such as those endorsed by the American Investment Council’s Guidelines for Responsible Investing and the United Nations’ Principles for Responsible Investing. Our digital presence will reflect our up-to-date policy with respect to ESG matters.
Transparent with our goals—Our ESG Policy is the standard of what others should expect from us and the companies in which we invest in.