SSA: In European sovereign bonds investments we rank the countries by looking at several governance indicators. Only the top 25% ranking countries are eligible for inclusion. We take into account Governance data from the World Bank Worldwide Governance Index.
EMD: We use negative screening based on UN PRI principals and ESG criteria (based on a set of ESG indices such as ND-GAIN, HDI etc., which are updated yearly) to provide a minimum level of ESG standards in the portfolio. This results in excluding around 50% of the amount of countries.
EMD: Norms-based screening is done via Global Compact Violators an
Corporates (Fin and nonFins), we use an exclusion list for negative screening. As of 2017 Emerging market Corporates are excluded due to concerns on Governance. The exclusion criteria are reviewed on a quarterly basis and/or if a material ESG risk materializes. Furthermore, for sectors with high ESG risks, we arrive at a preference for various subsectors or group of companies and use positive/best-in-class screening. In terms of norm-based screening, we analyze each corporate that is part of our investable universe and we require certain minimum standards regarding environment, social and governance, disclosure and business practice.