The fixed income investment process at ICG is a thorough bottom-up research process, where ESG issues are incorporated into our investment research and decision-making processes. In our processes:
We identify relevant (or potentially relevant) ESG issues in the investment research conducted by our analysts. Where necessary we may use external consultants or request external due diligence be conducted on a particular issue. We assess the financial significance of these issues as an integral part of our process of determining the risk and returns of the investment in question. This analysis, as part of our wider research process, informs our willingness to invest and/or the terms on which we are willing to invest. This analysis is bottom-up and case-by-case for each issuer.
We present this research to our Investment Committees for approval, where it is reviewed and discussed and further investigation may be requested from the analysts.
If we decide to invest, the material ESG issues identified in our initial research (or any that arise thereafter) are monitored by our analysts and, where appropriate, discussed with investment committees. As monitoring is a key component of our analytical process, we include ESG information and updates in our quarterly portfolio review discussions and are progressively rolling out ESG factors within our internal databases (see 03.3 above).