Our organization is in the process of formalizing, deepening and strengthening ESG incorporation. Consistent with our active management and bottom up philosophy, our investment decisions are based on an in-depth understanding of companies. Although not formalized and not expressed in terms of "ESG incorporation", our approach to investment has historically contained engagement and ESG integration features.
LVAM has two dedicated research teams, one devoted to Latam Equities and another to Latam Corporate Debt. In both cases, fundamental analysts are organized by sector with a cross country view (covering Chile, Brazil, Colombia, Perú, México). Our research process involves frequent direct communication with companies (both through IR departments and also with the management) as well as visits to HQ and facilities in order to asess qualitative/soft aspects of management and get a further view on what is behind the company figures. This assessment has mainly addressed governance issues (such as ownership, minority shareholders rights), that are discussed within the committee and incorporated in the final decision making through risk assessment tools. The framework we are working on will include material environnemental and social criteria in the analysis, and will work as an official roadmap to engage with companies on the relevant ESG matters.