At a firm level we do not run scenario analysis or impose specific ESG views on our investments. However, our active equity and fixed income analysts incorporate analyses of the impacts of various ESG considerations such as climate change, demographic shifts, regulatory trends, etc. in their research. Insights gained from these analyses are shared with active strategy portfolio managers.
In addition, we do a scenario analysis in our Carbon Efficiency Strategy that includes factors representing the investment impacts of future environmental trends and consider ESG issues in sector weightings. We will also reflect clients’ ESG beliefs and objectives in bespoke portfolios using client-directed screens.