As explained previously, 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. We have formed very strong relationships with company management teams in our sectors and benefit a lot from these meetings, both in terms of issuer specific factors as well wider industry dynamics.
We also directly ask companies for particular non-publically available inputs that feed into our sustainability rating system (e.g. employee turnover data). In addition, we regularly interact with private companies, consultants, industry experts, NGOs and policy makers.
The rating system allows us to constantly monitor the ESG performance of our investments. Our data rating is fully transparent and we are happy to share our findings with investors.
The above information is reflective of our 1798 TerreNeuve strategy.