Indicate whether the organisation carries out scenario analysis and/or modelling, and if it does, provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).
Additional information. [OPTIONAL]
ESG and sustainability issues are considered in our risk-based analysis at the sector and industry level and can impact allocation decisions. For example, SKY Harbor continues to avoid investment in companies whose primary business is thermal coal and is increasingly divesting from the energy sector. The decision to avoid this type of risk was largely based upon our view that financial flexibility and future profitability for the US coal sector and now the high yield energy sector is increasingly pressured by global investment restrictions and costs associated with environmental-based regulatory and compliance measures.