GTC: The Manager Research Group employs a proprietary evaluation tool called the Sustainable & Impact Scoring Marix, which first determines a strategy's investment approach across ESG Integration, ESG Mandated, Thematic, and Concessionary High-Impact. Once an investment approach is determined, a weighted materiality matrix is applied across five key areas: Impact Outcome; Philosophy of a Firm; Proprietary Data and Engagement; Documentation, Measurement and Reporting; and Industry Contribution. The Sustainable & Impact Scoring Matrix is revisited quarterly via manager reviews, including analysis of an underlying portfolio to ensure alignment with a client's values. At Glenmede, senior specialists support the ongoing evaluation and monitoring of all managers as part of their normal investment duties, with continual review of the strength of each strategy's approach to Sustainable & Impact investing. We offer underlying managers specific detail around areas in which we suggest they improve to ensure they are positioning in line with the evolution of the market. By that standard, we seek to be a constructivist in improving the overall quality of ESG related approaches in the marketplace.
GIM: GIM has been managing ESG-mandated portfolios using a quantitatively-based discipline for more than ten years based on restriction lists and downside screening. GIM's Responsible ESG strategy is based on a combination of positive and negative screenings using MSCI rankings. Stocks with poor ESG rankings are sold from the portfolio and excluded from buy lists. We adjust our alpha signals to reflect a combined 40% weighting in the absolute level and 1-year change in ESG scores. GIM's Women in Leadership strategy focuses on companies with significant executive and/or management exposure, including chairwoman, female CEO, >25% of board or at least 25% of women in management.