There are two different processes. For our thematic overlay (climate change, land, and water), the ESG team researches the issuer and excludes or upgrades bonds issued by that party based on their negative or positive contribution to one of our themes.
For green and social bonds, the bond is analysed primarily at bond and use of proceeds level. However, we also consider whether the issuer makes real efforts, for example, towards an energy transition and more sustainability to avoid green washing. The bond needs to meet the criteria of ACTIAM's green bond policy at the minimum. These criteria go beyond GBP or CBI principles. If this is not the case, the bond will not be registered as a green bond in ACTIAM's system, thereby decreasing the likelihood that this bond will be bought - if the bond is still bought. Plus if it is bought, it will not be registered as a green bond and will not be included in ACTIAM's administration of green bonds. After the Green Bond mark is given, an assessment is done and an ACTIAM ESG score is given. Within the process, there is close corporation between Portfolio Management, Treasury and the ESG team.