Incorporating Diversity and Inclusion in Investment Analysis
Kimberly Gifford, CFA, Portfolio Analyst
In ClearBridge’s approach to integrated ESG and fundamental analysis of public equities, we focus our ESG analysis and engagements on what is material. Human capital management, and specifically diversity and inclusion, is material to every company in every sector. We begin by identifying and measuring what is material, then move to engaging and advocating for improvements. Yet within diversity and inclusion, there is a lack of disclosure, as well as a lack of comparability among disclosures. While some areas of diversity disclosure are still in the early stages, ClearBridge is benefiting from, and helping further, some groundbreaking research on gender equality data and is having meaningful engagements on all aspects of diversity and inclusion.
