Harrington Investments uses a top-down, bottom-up fundamental approach to portfolio management. Our top-down approach looks at emerging trends in the world, such as the growth of clean tech, peak oil, and population demographics, to identify sectors of the economy that we believe will prosper in the coming years. Our bottom-up approach looks at the financial health of companies in these sectors to try and identify the leaders in the emerging trends of tomorrow.
Investment Criteria and Analysis
HII maintains a proprietary SRI securities list consisting of domestic large cap and mid-cap stocks, and foreign ADRs. Only securities on this list are used in client portfolios.
Our investment committee uses the following three step analytical approach to add new stocks to our proprietary list.
- Exclusionary Criteria: Remove companies from analysis that do not pass our exclusionary screens.
- Inclusionary Criteria: Identify top performing companies based on a set of their environmental, social and governance (ESG) metrics.
- Financial Analysis: Assess the financial strength of the top ESG performers. Only stocks that are perceived to have long-term sustainable growth prospects are included in our proprietary securities list.
All stock recommendations by the Investment Committee are subject to periodic social and environmental review, and are potential targets for shareholder advocacy.