TIAA Investments' ESG integration strategy in public fixed income includes increasing access to ESG research and data, educating research analysts and portfolio managers through external speakers, events, and webinars, and gathering information about ESG integration progress through an investment team survey.
Our strategy further expanded in 2017 to emphasize capturing internal views on issuer ESG performance. In support of this goal, future efforts will include in-depth internal ESG training and dedication of additional investment team resources.
For private fixed income investments, individual investment teams identify and manage risks that apply to the specific assets that they oversee. For example, our private direct equity investments in agriculture, timberland, energy and infrastructure are subject to policies that mandate pre-deal due diligence activities, selection of appropriate partners and agents, use of operating risk scorecards and ongoing monitoring activities that seek to measure and mitigate risks (including environmental) at the asset level.
For the thematic portion of our ESG-focused funds, ESG information is captured in a quarterly reporting process detailing how each investment aligns with one of four themes. These reports are used in a periodic review with the investment team, which covers the eligibility of individual investments and recommendations for process improvement.