Schroder Adveq assesses a manager’s ability to align their investment approach with our investment strategy, by conducting a detailed assessment of each historical portfolio company’s financial, operational and ESG profile and developments and the impact the manager had on the company’s performance and ESG approach. In addition, we examine the firm and its target investment strategy’s viability on a go forward basis to establish confidence in investment execution capabilities and market dynamics to support our ESG and risk/return expectations.
We review the manager’s ability to identify and manage ESG risks and opportunities through staffing, training and organisational commitment to ESG. The assessment includes understanding the manager’s availability and use of ESG resources and expertise within the firm, availability and use of outside ESG resources and expertise, lines of reporting and incentive structures for manager’s staff on ESG issues and management, and the training on ESG risks and opportunities for manager’s staff.