Ownership of ESG Characteristics

A portfolio can be viewed as the collection of the businesses, policies and practices of
constituent companies. We measure investorsʼ Ownership of this collection. Ownership
metrics aggregate an assortment of company specific Environmental, Social and Governance
characteristics to the portfolio level, and they can inform investment and engagement
decisions. Relative to a benchmark, investor Ownership is active and satisfies a zero-sum
property, which underscores the distinction between Ownership and impact. Ownership of
ESG characteristics may be interpreted as ascribing ethical responsibility, but that
conclusion and any decisions that result from it belong to the investor.