We use an external ESG research provider to supplement our analysis for both the equity and fixed income teams globally. These reports are forwarded by the vendor to the company for review by them.
Our Sustainable Investing team is responsible for periodically reviewing the quality of our ESG research provider and changing providers if considered necessary.
Our global Sustainable Investing team also provide our PMs around the world, on request, with a breakdown of their portfolio according to the external ESG ratings. This fund analysis forms part of the discussion members of our ESG team have with the PMs on the highest risk ESG factors in their portfolios. We also provide a similar report to our analysts based on their coverage and this forms part of their overall investment analysis.
ESG ratings and carbon intensity are included in the Quarterly Fund Review (QFR) process. The QFR is a detailed analysis of each portfolio, conducted by the relevant CIO and attended by the portfolio manager and representatives from the risk, portfolio construction and investment directing teams. An understanding of each portfolio’s exposure to ESG related issues is a fundamental part of this review.