Harrington Investment Management

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Harrington Investment Management, LLC (HIM) is a socially responsible investment firm based in Napa, California. Founded in 1982 by John Harrington, the firm is a pioneer in shareholder advocacy and utilizes a values-driven approach to investing. HIM focuses on integrating environmental, social, and governance (ESG) factors into its investment process and actively engages with companies to promote positive change. The firm’s core philosophy centers on the belief that companies which operate responsibly and sustainably are more likely to generate long-term value for their shareholders. This belief is manifested in two key areas: careful portfolio construction and proactive shareholder engagement. In terms of portfolio construction, HIM employs a disciplined screening process to identify companies that meet its ESG criteria. This process typically involves evaluating companies on a range of factors, including their environmental impact, labor practices, diversity and inclusion policies, human rights records, and corporate governance structures. Negative screening is often used to exclude companies involved in activities deemed harmful or unethical, such as weapons manufacturing, tobacco production, or fossil fuel extraction. Conversely, positive screening may be employed to identify companies that are leaders in their respective industries in terms of ESG performance. However, HIM’s commitment to social responsibility extends beyond simply selecting companies with strong ESG profiles. A cornerstone of their strategy is shareholder advocacy, which involves actively engaging with portfolio companies to encourage them to improve their ESG performance. This engagement takes various forms, including filing shareholder resolutions, writing letters to management, meeting with company representatives, and participating in industry dialogues. Shareholder resolutions are a particularly powerful tool used by HIM. These proposals, submitted to a company’s board of directors for consideration at its annual shareholder meeting, address a wide range of ESG issues. Examples include resolutions calling for greater transparency on climate change risks, improved diversity on corporate boards, enhanced human rights due diligence in supply chains, and the adoption of more sustainable environmental practices. The firm’s engagement process is not merely about filing resolutions; it is a collaborative effort aimed at building constructive dialogue with companies. HIM believes that by working collaboratively with management teams, they can help companies identify opportunities to improve their ESG performance and create long-term value for all stakeholders. Their approach is often characterized by a focus on evidence-based arguments, a willingness to listen to management’s perspectives, and a commitment to finding solutions that are both practical and impactful. Over the years, Harrington Investment Management has been instrumental in raising awareness of critical ESG issues and promoting positive change within the corporate world. They have successfully engaged with numerous companies across a variety of industries, influencing them to adopt more responsible and sustainable practices. Their work has earned them a reputation as a leading voice in the socially responsible investing movement. While the precise assets under management fluctuate, HIM typically manages portfolios for individuals, families, foundations, and other institutions who share their commitment to socially responsible investing. Their long-standing track record and dedication to shareholder advocacy solidify their position as a significant player in the ESG investment landscape.