ABSTRACT
In order to obtain an accurate valuation of a company, material governance, social, ethical and environmental (gsee) issues must be identified and factored in to the integrated investment analysis. This chapter examines whether and how investment managers can generate outperformance when focusing on gsee issues. It provides an overview of the reach Regulation and the implications for chemical companies operating in the eu. The chapter presents a description of how Insight Investment, in collaboration with the Centre for Environmental Strategy (ces), evaluated the implications of reach for Insight's investment portfolio. It concludes with a discussion of the added value to Insight of the analysis. Insight Investment is the fund manager for Halifax Bank of Scotland (hbos plc), with approximately £75 billion of funds under management, including significant holdings in European chemical companies.
