RESPONSIBLE INVESTMENT STATEMENT
Mellon has established a formal statement, that applies to all assets under management, outlining our commitment to responsible investing . This statement was approved after our merger in February 2018 and is reviewed, modified if necessary and approved annually by the Chief Investment Officers. In addition, we offer certain strategies that utilize more comprehensive ESG guidelines such as our Carbon Efficiency Strategy.
CARBON EFFICIENCY STRATEGY - Investment Guidelines
We analyze both a company's carbon emissions per revenue and the extent to which they manage the carbon emissions risk inherent in their business. We call these scores Carbon Intensity and Carbon Readiness respectively. Both scores are sector relative. Carbon intensity is defined as the greenhouse gas emissions per unit of sales. It is a component of our proprietary Carbon Intensity Score. Companies with high carbon intensity receive a low score and vice versa. This score determines the direction of the strategy's weight (e.g. over/under the index weight). Companies with high carbon intensity and a low score are a candidate to under-weight relative to the benchmark weight. Our proprietary Carbon Readiness Score measures the extent to which companies manage carbon emissions risk inherent in their business relative to other companies in their sector. A high score indicates a company addresses its carbon risks in a positive way setting the upper bound of the company's overweight. This score determines the magnitude of the over or under-weight of the strategy. The maximum over/under-weight is ±20bps relative to the benchmark weight. Exposures are limited to within 0.50% of the benchmark (Russell 3000® Index).
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Mellon has adopted the general proxy voting policy of The Bank of New York Mellon Corporation's ("BNY Mellon") Proxy Voting and Governance Committee (PVGC).