Responsible Investing

We incorporate both financial and non-financial factors, including environmental, social and governance (ESG) considerations, into our investment process. Our investment team continually monitors developments on the regulatory, political and technological fronts to gauge the economic impact to our companies from environmental factors, such as climate change. Socially, we monitor how well a company is positioned to retain key talent, manage supply chain risk, and outperform local product safety and quality regulations, among other metrics. In all companies in which we invest, we seek robust corporate governance practices. This full mosaic of information is used to assess the quality of a business and its ability to sustain per share value growth over the long term.

For more than 40 years, Harris Associates has developed a strong reputation as a long-term, shareholder-oriented investment firm. This approach is a byproduct of our value investment philosophy that requires every investment to meet the following criteria: 1) they are companies that we believe are priced at significant discounts to our estimate of the company’s intrinsic value, 2) they are companies that have a path to grow per share value and 3) they are companies that are run by managers who think and act as owners.

We are continuously learning and advancing our understanding of ESG topics and trends. Our goal is to continue to improve our ability to recognize, evaluate and act on ESG opportunities and risks to stay ahead of the curve.

• Harris Associates formalizes its investment policy around responsible investing. The firm’s Managing Board approved the initiative to formally integrate consideration of material ESG factors into our investment process. While our assessment of company management and corporate governance has always played a critical role in our investment process, we formally implemented our Responsible Investing Policy in 2017, which covers firm-wide assets.

• The firm writes its Engagement Policy, which outlines our longstanding process of interacting with management teams to drive shareholder value creation.

• Harris’ Diversity and Inclusion Council was founded and is responsible for identifying opportunities to develop, promote and integrate diversity and inclusion principles throughout the firm.
• The firm joins the United Nations-supported Principles for Responsible Investment (UN PRI).

• Harris completes its first UN PRI assessment.
• The firm hires Chris Knowland, Director of Responsible Investing.