SSA: We use negative screening based on UN PRI principals and European sovereign bonds investments we rank the countries by looking at several governance indicators. Only the top 25% ranking countries are eligible for inclusion. We take into account Governance data from the World Bank Worldwide Governance Index.
EMD: We use negative screening based on UN PRI principals and ESG criteria (based on MSCI country scores which are updated yearly) to provide a minimum level of ESG standards in the portfolio. When we established the investable universe, we do a deep-dive in each country that we are allowed to invest in and we take into account data that covers E, S and G. The analysis done is updated regularly and consists indicators like United Nations Human Development Index, World Bank Worldwide Governance Index, Heritage Index of Economic Freedom, World Bank Ease of Doing Business Index, World Bank Dependency Ratio, MSCI environmental data to analyze countries.
Credits: We use negative screening based on UN PRI principals and positive screening in instrument selection (green bonds). Subsequently, we (analyst is in the lead, but portfolio managers are also involved) perform a downside risk analysis which is most important to bondholders (see further 04.3)