From a top down perspective the TerreNeuve investment team carries out in depth, thematic research on the sustainability trends they believe will influence their coverage sectors going forward. They analyse companies' portfolios of goods and services to see whether are well positioned to benefit from, or will suffer from, the development of these trends.
From a bottom up perspective, as previously mentioned, the TerreNeuve investment team has developed a proprietary sustainability rating system for their investment universe over the last decade, which acts as an extended company due diligence framework. 40% of a company's sustainability rating feeds through from external ESG data sources such as: Sustainalytics, Trucost, Glassdoor, Company Reports, Google Trends, Bloomberg and ISS data. The remaining 60% comes from internally generated qualitative and quantitative inputs from the team. The majority of these inputs feed through from an intensive company meetings program, of around 700 each year. The team has formed strong relationships with company management teams in their relevant sectors and gain significant insight from these meetings, both in terms of issuer specific factors as well wider industry dynamics. The team also directly asks companies for particular non-publically available inputs that feed into their sustainability rating system (e.g. employee turnover data). In addition, they regularly interact with private companies, consultants, industry experts, NGOs and policy makers.
This information is reflective of our 1798 TerreNeuve strategy