The CLO research analysts perform a detailed review of each potential investment which includes a range of ESG factors, such as, governance risks (e.g. management quality), concerns over jurisdiction, sector, etc. This is being formalized by implementing a proprietary tool of circa 20 questions which will applied for new investment from 2018.
The questions within the analysis tool focus on:
- Governance risks with a specific focus for high risk countries and sectors including corruption & cyber-security risks; management quality; existing or latent controversies etc.
- Social risks and opportunities including health & safety risks; social risks in the supply chain; applying a bonus for products and services targeting a social benefit etc.
- Environmental risks and opportunities including regulatory risks; and company specific environmental and climate impact applying a bonus for product and services targeting the energy and ecological transition for the climate and the circular economy.