We analyse company governance aspects from a country-perspective, as governance is mainly driven by local codes, rules, traditions etc. We look for potential outliers from a country-perspective.
We analyse company environmental and social aspects from a sector-perspective. We have determined what the most material environmental and social risks are for our sub-sectors and analyse how well companies address these risks through effective management systems and processes. We are minded that companies do not necessarily "fit well" into industry/sector groups and company activities are analysed for most material risks.
We identify any controversies that companies have faced.
We write an ESG-write up and these elements are the basis for our proprietary ESG-rating. We review the ESG analysis and score on an annual basis or if a material event occurs.
The ESG-ratings are available for the entire investment team in our market data provider system, in the universe and investable universe databases and in the risk management and portfolio review as well as portfolio construction materials.
ESG issues are a standing agenda item at the weekly Investment Committee meetings and during the weekly portfolio review meetings for the various listed equity strategies.