Impax Thematic active environmental strategies and Active Global Equities:
We conduct detailed, proprietary financial and ESG-analysis of companies considered for the investable universe and review the ESG-analysis periodically. We assign a proprietary ESG-rating for each company. If a company scores below our threshold-level, it is excluded from our investable universe.
Our portfolio construction process takes ESG into account. Companies with ESG-scores below a certain level have their position sizes capped in the portfolios for risk management purposes. Companies with strong ESG-scores or with improving ESG-profiles, can give conviction to the portfolio manager to increase the position-sizes in the portfolio.
The lead analysts can adjust the WACC on companies based on ESG factors.
Impax US Large Cap Active Equities:
We integrate ESG-data provided by the Sustainability Research team to inform stock selection and position sizing. For example, based on internal ESG-research, the portfolio managers have the confidence to make a global diversified industrial manufacturing company one of the largest active positions in the portfolio. This company is a leader in energy-efficient HVAC systems and has set targets for improving key sustainability issues, including GHG emissions, water and waste. It demonstrates strong gender diversity on the board and in senior management.