Channing Capital Management

ESG Considerations

Investment-Research Process & ESG Integration

To a degree, environmental, social, and governance (ESG) factors inform certain parts of Channing Global’s investment processes. Our investment philosophy emphasizes high- quality companies and we seek evidence of good corporate governance, in particular, in our analysis of potential investments. In certain instances, the Firm also assesses the environmental and social track records of the companies in which we may invest, primarily to evaluate the potential legal and/or regulatory risks they might face.

Channing Global incorporates certain aspects of ESG analysis into its multi-faceted investment processes. The Firm’s investment-research team reviews reliable external sources of market intelligence on the subject, including ESG scores compiled by recognized third-party providers.

We approach ESG integration on a case-by-case basis and the metrics used or the mix of factors considered may vary by investment strategy and also by industry. In addition to reviewing ratings by third-party providers, we also incorporate ESG criteria into our diligence process, centered on corporate governance, to screen companies before evaluating the environmental and social considerations that may be unique to the company or industry.

We recognize that perceptions of what constitutes an ESG policy can vary, and we seek to be as transparent as possible about how we incorporate ESG considerations into our investment process and strategies. Our primary objective is to evaluate the potential material risks these factors may present. We generally have not taken an activist stance with regard to the three pillars of ESG.

Shareholder Engagement/Stewardship

Regarding proxies and shareholder engagement, Channing Global endeavors to discuss with corporate management any ESG-related concerns we may have either during one-on-one meetings or during corporate presentations.