Our ESG Research Team uses data from a number of different sources in order to evaluate companies’ level of disclosure and reporting on ESG indicators. As inputs to our approach, we use ESG research from Morgan Stanley, Credit Suisse, CLSA, Goldman Sachs Sustain, UBS, Bank of America Merrill Lynch, Société Générale, MSCI, Bloomberg, ISS, Sustainalytics, Glass Lewis, and FactSet amongst others. Data from select sources feeds a proprietary algorithm that we have developed in order to provide internal ESG ratings on more than 7,000 companies. We are continually evaluating new data providers to improve the coverage and quality of inputs into our ESG analysis. These ratings and external research providers serve as a starting point for further research and engagement by the ESG Research team.
For our government bond portfolios, we have resources available to help investors assess the ESG risks or opportunities that would impact the long term economic growth and sustainable development of the respective countries. For example, ESG issues relative to sovereign bonds can include political stability, social inequality, investment in education, and climate change management.