Articles & Insights

Terra Alpha Scores Highly in 2019 PRI Assessment

PRI scores Terra Alpha Investments an A+ for Strategy and Governance.

Terra Alpha Investments first became a signatory of the Principles for Responsible Investment (PRI) in June of 2017. The principles espoused by PRI are highly aligned with our firm’s investment philosophy and process, and we are proud to support their work.

Principle #6 of the PRI’s six principles (see box below) is to report to PRI on activities and progress towards implementing the principles. We filed our first PRI report in early 2019 and are pleased to share that our firm received an A+ score for our firm’s investment strategy and governance and an A for our overall listed equity investment process.

Our A+ score for Strategy and Governance places Terra Alpha in the top quartile of all investment managers scored by PRI and in the top decile for managers in our AUM peer group.

Our Investment score (A) was influenced significantly by our decision to not publicly disclose every detail of our investment process and by the fact that we do not employ exclusionary screens on ESG factors. We do provide extensive information about our investment process to our investors and, where appropriate, with prospective investors. We do not use negative screens in our investment process, but instead use inclusionary screens on environmental performance factors and seek out companies that value their employees and customers and that practice good governance.

We also received an A score for our Active Ownership, Individual Engagement work and our Collaborative Engagement work. Our engagement approach is largely focused on direct engagement with companies to encourage improved business practices and enhanced disclosure of policies and practices.

We continue to engage with PRI in a number of ways and support their continued work to assure that all signatories meet their commitment to the Principles.

Terra Alpha Investments is a public equity manager founded in 2014 by highly experienced investors who share the conviction that our rapidly evolving world requires a change in investment thinking. Our rigorous and proprietary Environmental Productivity (EP) analysis values our planet’s natural resources and sits at the center of our successful investment process. Our innovative process of quantitative and qualitative analysis helps us identify leading companies with the optimal combination of enduring business models and superior EP. We believe this process is the primary driver of our ability to deliver superior long-term investment returns for our investors.