One innovative approach that we took In 2019 was the creation of what we are calling our ‘Fixed Income Best Practices’ project. The assessment begins with the fundamental work of the analysts, and includes all steps in the investment processes including engagement, valuation, portfolio construction, and risk management. We are working in 2020 to expand the enhancements across all of our fixed income product teams. For example, our analysts are creating their own industry materiality maps, which will drive an internal “Loomis ESG score” or assessment (1-3) for each credit covered. The materiality maps are based on the foundational work of the SASB materiality maps, but are enhanced by our own senior analysts to more accurately reflect their understanding of these issues. The internal ESG score will be incorporated into our ESG Center as well as our proprietary valuation tools (URV). Our ESG score is not an overlay to the internal Loomis rating of each credit, but a subset: it shines the light on the material ESG factors – both risks and opportunities.
We are also collaborating with our parent company affiliates, competitors, industry organizations, etc, to better learn and drive innovation.