As risk-aware, long-term investors, Broad Run believes that ESG factors can have a meaningful impact on the future value of a business. Our co-portfolio managers have been studying businesses together for nearly 20 years: as early-career analysts, portfolio managers, and now as the managing members of their own firm.
Over that time they have observed that businesses that create enduring shareholder value tend to operate in harmony with key stakeholders such as employees, customers, suppliers, lenders, and the broader community and environment. In contrast, we have noticed that businesses taking advantage of stakeholders often find their success fleeting.
Broad Run’s mission is to compound our clients' capital at a superior rate with prudence over time—given that our investment time horizon occasionally can be measured in decades rather than years, being prudent necessarily involves consideration of material ESG factors that may impact the mid- and long-term value of a business and ultimately compromise shareholder value creation.
Our Approach to ESG Integration
As part of our fiduciary duty to our clients, we believe we have a responsibility to consider the full range of risks and opportunities that have the potential to impact investment outcomes. ESG analysis and active ownership have long been a part of our investment process as we believe that, over the long term, such issues can have a meaningful impact on a company’s future value and risk profile. We strive to evaluate all material financial and non-financial factors in order to gain a comprehensive understanding of the company’s business model, margin of safety, growth prospects, industry dynamics and management quality. We believe businesses that thoughtfully balance the interests of shareholders as well as key stakeholders while delivering exceptional customer value are in the best position to deliver sustainable outcomes and profitability. As such, we analyze the company through the eyes of shareholders as well as key stakeholders.
Each member of the investment team is responsible for ESG research and incorporating it into the investment process. Our investment team members identify, evaluate, and integrate material environmental, social and governance factors into our company analysis.
Examples of ESG issues we may consider include:
No consideration of adverse impacts of investment decisions on sustainability factorsBroad Run does not consider adverse impacts, as defined within the Regulation (EU) 2019/2088, of investment decisions on sustainability factors. Broad Run does not manage investments intended to promote environmental or social characteristics nor investments where sustainable investment is an objective.
As risk-aware, long-term investors, Broad Run’s investment team evaluates material sustainability risks through methods integrated into our investment research and decision-making processes. All employees, including senior management, risk takers, and control functions, are compensated with a competitive base salary and either a discretionary bonus based on individual and firm performance or distributions calculated as a percentage of our firm’s profits. Performance-based compensation is assessed holistically. As such, employee compensation, including senior management, risk takers, and control functions, is consistent with the integration of ESG and sustainability risks.
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If you have additional questions about this disclosure, you may contact us at the office phone number below or via email to Bryan H. Adkins, CCO at
badkins@broadrunllc.com. This content was last reviewed 28 April, 2025.
Broad Run Investment Management, LLC
1530 Wilson Boulevard | Suite 530 | Arlington, Virginia 22209
O: (703) 260‐1260 | F: (703) 574-4312 | www.broadrunllc.com
