Sustainable Investing
Sustainable Investing With a Long-Term Perspective
At The Legacy Foundation, we believe environmental, social, and governance (ESG) factors can influence corporate performance and that integrating these considerations into the investment process may help manage risk and support long-term value within a retirement portfolio. Companies that demonstrate strong governance and maintain constructive relationships with employees, customers, communities, and the environment are often better positioned to navigate long-term challenges and opportunities.
For this reason, we offer a sustainable investing approach that fully integrates ESG factors into investment analysis and portfolio construction. This added level of evaluation allows for more informed decision-making and helps identify companies that are better prepared to adapt to the evolving global economy—supporting both financial objectives and responsible stewardship. The Legacy Foundation is proud to be a Certified B Corporation.
Three Pillars of ESG Investing
Environmental, social and governance (ESG) refer to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business.
Environmental
Our environmental criteria evaluate how effectively companies manage both operational and reputational risks, as well as how they position themselves to benefit from the transition to a more sustainable global economy. Areas of focus include air and water emissions, recycling and waste reduction, the use of clean and renewable energy, climate-related initiatives, and broader environmental policies and practices.
We generally favor companies that demonstrate strong environmental performance relative to their industry peers, maintain comprehensive environmental policies, and show a commitment to continuous improvement in environmental sustainability.
Social
Our workplace criteria evaluate how effectively companies create long-term value by supporting a productive and engaged workforce. Areas of focus include diversity and inclusion, occupational health and safety, employee relations, and respect for human rights. We generally favor companies that have policies and practices designed to promote safe, inclusive, and supportive work environments.
Our community criteria assess a company’s commitment to the communities in which it operates, including responsible engagement and sustainable development initiatives. Within our ESG investment process, we tend to favor companies that demonstrate a commitment to strengthening communities and enhancing quality of life where they do business.
Governance
Our governance criteria evaluate how effectively companies align the long-term interests of management with those of shareholders. Areas of focus include transparency, accountability, and shareholder rights, as reflected in board structure, executive compensation practices, ethical standards related to bribery and fraud, takeover defenses, and policies regarding political spending.
We also consider the composition of a company’s board and senior leadership, including diversity at the executive and board levels. In particular, we believe gender diversity among board members and senior management can be a meaningful factor in supporting sound governance practices and long-term business performance.
B Corps are mission-driven companies that balance purpose and profit
B Lab, a third-party global nonprofit organization, issues B Corp certifications to companies who’ve demonstrated high standards of social and environmental performance, accountability, and transparency.
At The Legacy Foundation, we have made these core tenets of our business and investing philosophy. We believe the inclusion of factors related to sustainable and responsible investing is necessary for a complete understanding of each investment’s risk and opportunity. By integrating these ESG factors into our investment decision-making process, we believe we can help mitigate risk and add long-term value to an investment portfolio. We believe this holistic approach to assessing risk and opportunity enhances our investment process.
Pillars of a B Corp Certification
B Corp certification rests on five pillars: governance, workers, community, customers, and environment. These pillars assess a company’s commitment to social and environmental responsibility, transparency, and accountability across its operations.
Certification Process
Achieve high social and environmental performance by obtaining a B Impact Assessment score of 80 or higher and successfully completing a risk review.
Making a commitment through their corporate governance structure to be accountable to all stakeholders.
Ensure transparency by making information about their performance, as measured against B Lab’s standards, publicly available on their B Corp profile on B Lab’s website.