All TIAA Investments holdings are subject to state and federal restrictions on holding securities issued by certain sovereigns or companies with ties to these sovereigns, such as Iran. We also restrict investment in both equity and debt securities issued by four companies with ties to Sudan due to concerns about potential involvement in human rights abuses.
TIAA Investments' ESG-focused funds are subject to certain positive/best-in-class and norms-based environmental, social and governance ("ESG") criteria for corporate and sovereign issuers.
For corporate issuers, the ESG evaluation process is conducted on an industry-specific basis and involves the identification of key performance indicators. The evaluation process favors companies with leadership in ESG performance relative to their peers. Typically, environmental assessment categories include climate change, natural resource use, waste management and environmental opportunities. Social evaluation categories include human capital, product safety and social opportunities. Governance assessment categories include corporate governance, business ethics.
Sovereign issuers must meet certain ESG criteria to be considered for inclusion in our ESG-focused funds. ESG assessments are based on risk management practices and ESG performance across several areas: natural resources, environmental externalities and vulnerability, human capital, economic environment, financial governance, and political governance.