We understand that environmental, social and governance (ESG) factors can impact the investment risk and return profiles of our investments. As fiduciaries, we incorporate relevant factors, including these, into our analysis of the long-term performance outlook of a company and the value of its securities. Depending on the particular situation, as part of our assessment of a company’s value, prospects and financial condition, we may consider information about many factors, including, among others, those that are considered ESG, such as exposure to regulation or litigation, labor relations, human rights, product quality and safety, reputation, governance practices, executive compensation, reporting and disclosure, community relations, energy costs and climate impact. Our experienced investors have a deep understanding of the companies in which we invest, and we attempt to take into account all the relevant factors that contribute to an informed investment decision. Intensive research, disciplined processes, and expert portfolio construction are the foundation of our commitment to reliable investing.
With an emphasis on fundamental research and risk management, we aim to help our clients meet their long-term investment objectives with confidence. As part of our values of stewardship and service, Voya Investment Management works closely with clients in order to customize our approach, when necessary and practicable, to meet specific client requirements.
We currently systematically provide ESG data to our fixed income investment teams, including Senior Loans, to ensure material ESG factors are considered in the investment process, and we have initiated a focused effort to enhance education around ESG factors. Ultimately, it is up to each analyst and PM to make an informed decision, inclusive of material ESG information. We understand the importance of having as broad a set of ESG data as possible, and we are continually evaluating additional sources of ESG information to make informed investment decisions.
As part of Voya IM’s ESG Program, we are working throughout the firm to enhance the systematic integration and understanding of ESG factors in our investment processes, and to create dedicated ESG solution capabilities across all platforms.