The screening criteria are based on 175 indicators, data on which is collected and monitored by Sustainalytics. They have a historical database that goes back to 2009, of which we are able to make use. Sustainalytics has been appointed to be our group-wide ESG data provider and we have agreed the development of the first screen of the worst (bottom 5%) ESG rated companies in their universe. Each quarter, we will screen all our portfolios to check if any of those companies are held, either as equity or debt. If this is the case, our managers will review their investment rationale for these companies. They will consider whether the ESG risks would, on balance, have a financially material impact on investment performance. Their investment decisions are recorded to create a reportable audit trail.
The criteria is reviewed each quarter and more frequently if new information is received intra quarter. We do not notify clients and/or beneficiaries on a regular basis as these screens form part of our investment processes, which may evolve from time to time. We can however, share information on request.