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IFC

PRI reporting framework 2019

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (C) Implementation: Integration

(C) Implementation: Integration

FI 10. Integration overview

10.1. Describe your approach to integrating ESG into traditional financial analysis.

IFC's Sustainability Framework articulates our strategic commitment to sustainable development and is an integral part of our approach to risk management. The Sustainability Framework does not cover IFC's liquid assets (Fixed income - SSA, corporate (financial), corporate (non-financial), and securitised - and Cash, as per above). IFC's Sustainability Framework does apply to the portion of "Fixed income - corporate (non-financial)" that includes Private Debt, i.e. loans.

Our Sustainability Framework promotes sound environmental and social practices, encourages transparency and accountability, and contributes to positive development impacts. Link to IFC's Sustainability Framework:

http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability+and+disclosure/environmental-social-governance/sustainability+framework

10.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

Corporate (non-financial)

IFC's Sustainability Framework articulates our strategic commitment to sustainable development and is an integral part of our approach to risk management. The Sustainability Framework does not cover IFC's liquid assets (Fixed income - SSA, corporate (financial), corporate (non-financial), and securitised - and Cash, as per above). IFC's Sustainability Framework does apply to the portion of "Fixed income - corporate (non-financial)" that includes Private Debt, i.e. loans.

Our Sustainability Framework promotes sound environmental and social practices, encourages transparency and accountability, and contributes to positive development impacts. Link to IFC's Sustainability Framework:

http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability+and+disclosure/environmental-social-governance/sustainability+framework

10.3. Additional information [OPTIONAL]


FI 11. Integration - ESG information in investment processes

11.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
Corporate (non-financial)
ESG analysis is integrated into fundamental analysis
ESG analysis is used to adjust the internal credit assessments of issuers.
ESG analysis is used to adjust forecasted financials and future cash flow estimates.
ESG analysis impacts the ranking of an issuer relative to a chosen peer group.
An issuer's ESG bond spreads and its relative value versus its sector peers are analysed to find out if all risks are priced in.
The impact of ESG analysis on bonds of an issuer with different durations/maturities are analysed.
Sensitivity analysis and scenario analysis are applied to valuation models to compare the difference between base-case and ESG-integrated security valuation.
ESG analysis is integrated into portfolio weighting decisions.
Companies, sectors, countries and currency and monitored for changes in ESG exposure and for breaches of risk limits.
The ESG profile of portfolios is examined for securities with high ESG risks and assessed relative to the ESG profile of a benchmark.
Other, specify

11.2. Additional information [OPTIONAL]

IFC screens investments to ensure they do not fall under IFC's Exclusions List found here:

https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/company-resources/ifcexclusionlist

IFC is currently evaluating and pilot testing tools to track ESG information related to porfolio bonds.


FI 12. Integration - E,S and G issues reviewed

12.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Environment
Social
Governance
Corporate (non-financial)

Environmental

Social

Governance

12.2. Please provide more detail on how you review E, S and/or G factors in your integration process.

Corporate (non-financial)

IFC's Sustainability Framework articulates our strategic commitment to sustainable development and is an integral part of our approach to risk management. The Sustainability Framework does not cover IFC's liquid assets (Fixed income - SSA, corporate (financial), corporate (non-financial), and securitised - and Cash, as per above). IFC's Sustainability Framework does apply to the portion of "Fixed income - corporate (non-financial)" that includes Private Debt, i.e. loans.

Our Sustainability Framework promotes sound environmental and social practices, encourages transparency and accountability, and contributes to positive development impacts. Link to IFC's Sustainability Framework:

http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability+and+disclosure/environmental-social-governance/sustainability+framework

12.3. Additional information.[OPTIONAL]


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