ESG is integral to our investment process and the credit investment decision is both qualitative and quantitative.
The Fixed Income team applies a negative screening to companies that engage in:
• Production or activities involving harmful or exploitive forms of labour;
• Any form of child labour;
• Manufacture of weapons, weapons support or warfare systems for terrorist related activities;
• Production and/or distribution of narcotic drugs;
• Production and/or trade of any product or activity deemed illegal by laws, regulations and/or international conventions (animal poaching, illegal harvested timber; environmental pollution, oil operations, pornography, etc.);
• A history of serious health and safety breaches;
Governance accounts for the majority of the weighting within our scoring methodology as the team believes that the management team will dictate the Social and Environmental policies of the company. An Issuer must pass the minimum score levels required from our internal qualitative ESG assessment for an investment recommendation
Where the score is low, we engage directly with the management team to note our concerns and if no appropriate action is taken by the management we will also engage with other STANLIB investment teams to voice via proxy voting.