our view on responsible investing
A commitment to responsible investing permeates our fundamental approach.
We deploy long-term capital in pursuit of creating long-term positive impact. Since our founding, Riverbridge has strived to invest in high-quality companies that elevate the health, potential, and opportunity of people. A commitment to responsible investing—and the corollary concept of ESG (Environmental, Social, Governance) investing—is a core tenet of our business. This commitment is evident not only in the nature of our holdings but in our everyday practice. We don’t engage in short-sighted trading activity; we are true investors who own companies for long periods of time.
We believe that a responsible investment is a compelling business investment. The practices creating more sustainable communities are the very same practices that generate sustainable returns over long periods of time. In our view, companies that lead with a long-term view are thoughtful stewards of resources and capital—and are positioned to keep building their earnings power and intrinsic value over time.
How We Evaluate Companies
Our human-centered research process helps us identify companies with the investment disciplines to be both compelling business investments and responsible investments.
Our investment strategy bridges human insight with data analysis to identify companies that demonstrate the fundamental disciplines necessary to build their earnings power at above-average rates for long periods of time. By patiently and thoroughly asking questions, meeting face-to-face, and speaking with teams and stakeholders, we uncover the business realities—and the Environmental, Social, and Governance realities—that no checklist or screening process can fully provide.
We analyze each company for our five investment disciplines:
1
Sound Culture & Management
2
Strong Unit Growth
3
Strategic Market Position
4
Conservative Accounting
5
Internally Financed Growth
1
Sound Culture & Management
2
Strong Unit Growth
3
Strategic Market Position
4
Conservative Accounting
5
Internally Financed Growth
1
Sound Culture & Management
2
Strong Unit Growth
3
Strategic Market Position
4
Conservative Accounting
5
Internally Financed Growth
Companies aligned with these disciplines demonstrate characteristics of a compelling business investment:
- Top talent is attracted and retained, enhancing the company’s offerings
- Company is able to pivot and continuously add value to their customers
- Diverse thought is taken into consideration, allowing the company to progress
- Lessened resource dependency allows for lower operating costs
- Business has insight into emerging customer needs due to a high level of trust, allowing them to create in-demand solutions that reduce customer pain points
- Trusted partner for collaboration and innovation
- Business is less easily displaced because offerings create a tangible value proposition, enhancing retention and attracting new customers
- Allows company to focus and execute on long-term strategy vs. external factors and near-term challenges
- Company is not reliant upon external financing to sustain its growth across the business cycle
- Earnings are not overinflated – investors can be confident in the information management is conveying
- Top talent is attracted and retained, enhancing the company’s offerings
- Company is able to pivot and continuously add value to their customers
- Diverse thought is taken into consideration, allowing the company to progress
- Lessened resource dependency allows for lower operating costs
- Business has insight into emerging customer needs due to a high level of trust, allowing them to create in-demand solutions that reduce customer pain points
- Trusted partner for collaboration and innovation
- Business is less easily displaced because offerings create a tangible value proposition, enhancing retention and attracting new customers
- Allows company to focus and execute on long-term strategy vs. external factors and near-term challenges
- Company is not reliant upon external financing to sustain its growth across the business cycle
- Earnings are not overinflated – investors can be confident in the information management is conveying
- Top talent is attracted and retained, enhancing the company’s offerings
- Company is able to pivot and continuously add value to their customers
- Diverse thought is taken into consideration, allowing the company to progress
- Lessened resource dependency allows for lower operating costs
- Business has insight into emerging customer needs due to a high level of trust, allowing them to create in-demand solutions that reduce customer pain points
- Trusted partner for collaboration and innovation
- Business is less easily displaced because offerings create a tangible value proposition, enhancing retention and attracting new customers
- Allows company to focus and execute on long-term strategy vs. external factors and near-term challenges
- Company is not reliant upon external financing to sustain its growth across the business cycle
- Earnings are not overinflated – investors can be confident in the information management is conveying
We believe these disciplines also demonstrate common ESG characteristics such as:
Environmental
- Optimizes resource usage
- Resolves inefficiencies
- Enhances productivity
Social
- High employee investment and engagement
- Culture of constant improvement and innovation
- High degree of customer intimacy
- Excellent industry reputation
- Values diversity
Governance
- Long-term focus
- Disciplined capital allocation
- Transparent management and prudent governance
Environmental
- Optimizes resource usage
- Resolves inefficiencies
- Enhances productivity
Social
- High employee investment and engagement
- Culture of constant improvement and innovation
- High degree of customer intimacy
- Excellent industry reputation
- Values diversity
Governance
- Long-term focus
- Disciplined capital allocation
- Transparent management and prudent governance
RESPONSIBLE PRACTICES
Riverbridge Responsible Investing Policy
Responsible investing is a longstanding bedrock of what we view as the core purpose of companies and capital markets. We believe that true business value is built over long periods of time by companies meeting human needs in innovative ways, minimizing environmental dependency, creating resource efficiencies, and elevating the potential of people.
Read our responsible investing policy to learn more about:
1. Our Research Process
2. Engagement and proxy voting
3. Responsible Investing Community Engagement
