The Calvert Principles are a set of guidelines for responsible investing that have been developed by the Calvert Group, a leading provider of socially responsible investments. The Principles are designed to help investors make informed decisions about their investments and to ensure that their investments are in line with their values.
The Calvert Principles are based on the idea that investors should consider the environmental, social, and corporate governance (ESG) impacts of their investments. This means that investors should consider the potential risks and rewards associated with their investments, as well as the potential impacts on the environment, society, and the company itself.
The Principles are divided into four main categories: Environmental, Social, Governance, and Financial. Each category contains a set of criteria that investors should consider when making their investment decisions.
The Environmental criteria focus on the potential environmental impacts of an investment. This includes considering the potential impacts of climate change, water scarcity, and air pollution. Investors should also consider the potential impacts of the company’s operations on the environment, such as its use of natural resources and its waste management practices.
The Social criteria focus on the potential social impacts of an investment. This includes considering the potential impacts of the company’s operations on its employees, customers, and the communities in which it operates. Investors should also consider the potential impacts of the company’s operations on human rights, labor rights, and diversity.
The Governance criteria focus on the potential corporate governance impacts of an investment. This includes considering the potential impacts of the company’s board of directors, executive compensation, and shareholder rights. Investors should also consider the potential impacts of the company’s operations on its corporate culture and its ability to manage risk.
The Financial criteria focus on the potential financial impacts of an investment. This includes considering the potential impacts of the company’s operations on its financial performance, such as its profitability, liquidity, and debt levels. Investors should also consider the potential impacts of the company’s operations on its stock price and its ability to generate returns for shareholders.
The Calvert Principles are designed to help investors make informed decisions about their investments and to ensure that their investments are in line with their values. By considering the potential environmental, social, governance, and financial impacts of their investments, investors can make more informed decisions and ensure that their investments are in line with their values.
