As socially responsible investing moves from a trend to mandates, Vulcan ESG helps public bodies manage their portfolios through a proprietary ESG methodology to satisfy stakeholder demands, lower risk, and support strong returns.
What is ESG, and why does it matter?
ESG (Environmental, Social & Governance – often called “Sustainability”) is a sweeping set of non-financial factors affecting corporate behavior, governance, investing, and capital allocation. It has become the prism through which virtually every corporate decision must be viewed.
For decades, corporations have existed primarily to serve their shareholders and increase their profits. But over time, consumers have become more interested in ESG issues, motivating the businesses they buy from and invest in to adopt more sustainable practices.
As a public body, your portfolio consists of corporate assets to produce yield. However, that’s no longer enough. ESG has moved from the fringe to the forefront, and your stakeholders (taxpayers, regulatory agencies, financial institutions, etc.) are starting to ask more questions: why certain holdings and asset allocations were chosen, what your decision-making criteria is, if changes should be made, and more.
Making your portfolio more responsive to ESG not only helps answer those questions today, but also sets up your entire public body for success in the future. In fact, data shows that higher ESG scores lead to higher credit ratings and lower borrowing costs – all of which contribute to a competitive advantage and increased political capital.
The benefits of ESG investing
Investment advantage
Higher ESG score
Lower borrowing costs
Competitive, if not superior, returns
Sustainability advantages
Support climate initiatives
Support climate initiatives
Foster industry innovation
Political advantages
Improve public perception and brand
Increase bond ratings
Improve constituent loyalty
Why Vulcan?
Vulcan ESG is a fiduciary. Our singular duty is to the client and the client’s best interests. We are versed in the wickedly complex and the art of the ESG conversation.
ESG certification and specialization
After 30+ years in finance, we recognize ESG risk solutions as the most critical and necessary aspects of capital allocation and investing, both near and long term.
Education-based approach
As teachers at heart, we take the time to walk you through the portfolio management process so you feel knowledgeable and confident every step of the way.
Adaptive portfolio management
Instead of passively buying and holding, we actively adjust portfolios on an ongoing basis to ensure your investments are meeting your organization’s and taxpayers’ ESG needs.
Transparent communication
We believe transparency leads to trust. You and your team will always thoroughly understand your portfolio, investment strategy, and how it supports your goals.
Focus on lower-risk securities
We only invest in U.S. Treasuries and ESG-vetted, investment-grade corporate bonds.
Our approach
Your ESG profile must be developed with thought and reason to capture the sentiments and cultures of your community. Humans tend to be clumsy decision makers. That’s why Vulcan ESG uses Multi-Criteria Decision Analysis (MCDA) and Analytic Hierarchy Process (AHP) to build a rational framework to develop the posture which reflects your values and fulfills compliance demands.
Our approach
Your ESG profile must be developed with thought and reason to capture the sentiments and cultures of your community. Humans tend to be clumsy decision makers. That’s why Vulcan ESG uses Multi-Criteria Decision Analysis and Analytic Hierarchy Process to build a rational framework to develop the posture which reflects your values and fulfills compliance demands.
About our founder
Kenton McCarthy has been working in economic research and consulting, fixed income sales, trading, and portfolio management since 1990. For over 15 years, he has been dedicated to public portfolios in the Southwest and California, overseeing portfolio assets approaching $7 billion.
With a passion for education, Kenton received his Bachelor of Business from Texas Christian University, his MBA from Arizona State University (where he served as a faculty member), and his ESG Investing Certificate from Columbia University. He has also been a speaker and educator for numerous finance organizations.
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Schedule a free consultation
Reach out to tell us more about your municipality’s goals and learn how ESG risk solutions could provide financial safety and peace of mind.