Screening criteria is established on an annual basis for each sub-type of fixed income, and a periodical control is undergone.
As first approach to SRI, we have chosen screening, since it enable us relatively simply and quickly to select the assets we are more interested in according to ESG terms.
How ESG criteria are incorporated varies depending on the asset type:
Fixed income (Excluding ETFs and Funds): This is 80% of the data reported in this module):
-SSA: exclusion by country.
-Corporate (financial/non-financial): We exclude by country and we do norm-based exclusion. Additionally, we use the ESG rankings published by Sustainalytics and RobecoSAM to analyze companies and position them in regards to their comparable companies.
-Securitised: Requirement for minimum ESG criteria for issuing entities.
Fixed income ETFs and Funds: : (This is 20% of the data reported in this module) the management entity is evaluated by analyzing the ESG policies they use in their funds, and their subscriptions in different initiatives such as UNPRI, UN Global Compact, etc. We also conduct a research to ensure that the Management Entity is not involved in high level controversy and that it meets UN Global Compact principles.