"...meets the needs of the present without compromising the ability of future generations to meet their own needs."
UN Brundtland Commission on Sustainable Development
This is the goal of socially responsible investing. It seeks to identify and invest in companies that integrate ESG factors—environmental, social and governance—into their business practices and principles. Most investors’ primary goal is to maximize return while also managing risk. An increasing number of investors, though, recognize that risk comes in many forms and they are paying closer attention to the social and environmental impacts of decisions made by the investment managers they hire. While some investors may believe that tradeoffs are unavoidable between investing for return and investing to advance specific ESG objectives, we believe a well-designed responsible investment strategy can help investors reconcile what otherwise may appear to be mutually exclusive goals.
Responsible investment strategies can be designed to meet a variety of investor objectives. They can give priority either to the pursuit of risk-adjusted return or social and environmental impacts, depending on the investors’ objective.
ESG as an Investment Approach
A Fund That Invests in Companies That Enhance the Quality of Life
The Dreyfus Sustainable U.S. Equity Fund seeks capital growth by typically investing at least 80% of its net assets in stocks (or derivatives) of U.S. companies that demonstrate attractive investment attributes and sustainable business practices and have no material unresolvable issues.
The fund focuses on companies with market caps of $5 billion or more. The fund may invest up to 20% of its assets in foreign securities, including up to 10% in emerging market securities.
To determine if a company meets the fund’s socially responsible investment criteria, the managers examine an organization’s record in:
- Protecting and improving the environment
- Properly using natural resources
- Adhering to occupational health and safety, consumer protection and product purity standards
- Providing equal employment opportunities
The fund managers’ expertise has been demonstrated over time and they have a history of aligning the fund's investments with investors seeking sustainable and responsible opportunities.