There is a team of dedicated credit researchers at MEAG in Munich and New York. The credit researchers are obliged to conduct a detailed fundamental credit analysis of the issuer. This involves the evaluation of all available information. As part of this credit analysis, ESG criteria have to be considered. All information available from the MSCI ESG-reports are embedded into the research process and the MSCI ESG rating is part of the final investment memorandum. In addition, the fundamental credit score of the issuer takes into account ESG risks and opportunities. The investment memorandum has to include an evaluation of ESG criteria being considered and how they have impacted the investment recommendation and credit analysis. Investment summaries are circulated to all fixed income portfolio managers.
MEAG also invests directly in sustainable projects via Infrastructure Debt. In order to select the right projects we integrate the relevant ESG criteria into the analysis/due diligence. The criteria applied depends on the specific project.