As a boutique firm specializing solely in corporate high yield bond portfolios, SKY Harbor Capital is keenly attuned to identifying risks and opportunities in pursuit of our mission to provide superior risk-adjusted returns and world-class investment information to our clients and investors. Our investment teams and product working groups employ a variety of traditional techniques as well as proprietary quantitative investment models. Together these methods, sometimes referred to as the "mosaic" approach to investment analysis, attempt to capture what we believe are all the relevant public, non-public, material and non-material information about a high yield issuer to determine the long term value of the securities that we include in our clients' investment portfolios.
We explicitly recognize that environmental and climate-related risks and opportunities (as well as social, governance and other environmental factors) are an important part of the mosaic in evaluating high yield issuers. For example, in 2015, we divested our client portfolios of securities in the business of coal mining after concluding that the damage to the climate from these activities were no longer sustainable within the investment time horizon of our flagship strategies and products (which generally range from 1 to 5 years). Beginning in late 2016 we also began to underweight investment in the fossil fuel industry and in December 2018 launched a product that, among other things, explicitly excludes companies in the coal and fossil fuel sectors.
Our research framework integrates macro economic and market themes into a dynamically weighted fundamental analysis, the key pillars of which are: Industry Outlook, Business Due Diligence, Financial Analysis, and ESG Risk Factors. Our in-house research analysts utilize this framework to present the key risks and opportunities of the credits we analyze. A key component of that analysis is the ESG pillar, which is specific climate-related transition and physical risk analysis.
While not every Issuer has the same degree of exposure to climate-related physical and transition risk, but where relevant we specifically evaluate physical risk factors such as extreme weather, environmental degradation or remediation, GHG emissions, water usage and waste. Transitioning to a lower-carbon economy needs to be a top management priority, which is often manifested by such data points as: public sustainability reporting, periodic sustainability commentary, emissions disclosure, and the presence or absence of products that contribute to a lower-carbon economy. Each of the foregoing items are factor inputs to our analysis that we apply to each company that our analysts cover.
We have embarked on a project, an enhanced framework, that will incorporate a more detailed rubric that is intended to take the analysis further by incorporating principles and concepts set forth by the TCFD and SASB. We expect to be working on this enhancement throughout the remainder of 2020.