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Governance: Responsible Investing

The integration of a client’s values and preference for ESG factors is an extension of our long-standing investment management process, which starts with knowing our clients.

The integration of a client’s values and preference for ESG factors is an extension of our long-standing investment management process, which starts with knowing our clients. We seek to help our clients meet their goals and objectives while following the core tenets of portfolio management, including strategic asset allocation, diversification and cost. The focus on these tenets is considered and balanced with a client’s desire to include ESG investing in their portfolio and/or customize to their values.

We use third-party ESG data to assess the characteristics — financial and non-financial — of investment managers and third-party solutions. We conduct an annual survey of our investment managers to learn about their ESG processes, while also engaging with firms to understand their commitment to ESG. Through our interviews with investment managers and using resources like Sustainalytics, Bloomberg and Morningstar, we evaluate such factors as how managers engage with the companies they invest in, how they vote proxies, and whether that meets our criteria to be considered an ESG or values-based investing solution. This information, as well as performance analysis, is shared annually with our management-level Investment Committee, which oversees and has managerial responsibility for our ESG investment solutions.

We offer a platform of solutions to help our clients meet their ESG-related goals and objectives including:

  • ESG Integration – Strategies or investment firms may employ a positive tilt toward companies with positive ESG characteristics and exclude others based on specific ESG criteria, or seek out companies considered to be ESG leaders within their respective sectors and industries. Others may integrate ESG criteria at the sector, industry or company level to determine the allocations that might produce the best long-term risk and return characteristics for their portfolios.
  • Impact Investing – This approach generally allows the investor to target projects, initiatives and investments that seek to achieve specific environmental or social benefits, while also producing a return to the investor.

Our Investment Committee oversees and has managerial responsibility for our ESG investment solutions.

We have also expanded the values-based solutions offered by our investment management team. In late 2020, we launched the Cavanal Hill Mid Cap Diverse Leadership Fund through our affiliates Cavanal Hill Investment Management and Cavanal Hill Funds. The fund targets U.S. companies that demonstrate strong governance and reflect diversity among their leadership teams.

In March 2021, we launched ESG Impact Portfolios which offer a multi-asset solution that uses the company’s tactical and strategic allocation process, while selecting funds that primarily invest in companies which strive to balance their responsibilities to shareholders and global stakeholders. The portfolio is a solution for investors seeking to have both a positive impact and a competitive financial return.

Our efforts and programs help support the United Nations Sustainable Development Goals.

Our Commitment to ESG

For more than 100 years, we’ve focused on making sure that families and businesses have a trusted, secure source of financial expertise. We’ve been committed to making our communities a better place to live and work. And, we’ve been an employer that values diversity, promotes inclusion and fosters career growth for all of our team members.

Governance: Board Oversight
Governance: Business Ethics
Governance: Customers
Governance: Systemic Risk Management