Describe your approach to screening for internally managed active fixed income
SBIFMPL has recently started to have an ESG lens over our Fixed Income coverage. Following are the steps being followed:
- ESG Ratings: We take the ESG ratings of listed parent companies of fixed income issuers to map the overarching group level policies and initiatives that extend to the subsidiaries
- ESG Questionnaire: We send out our in-house ESG questionnaire to the fixed income companies to assess them on their ESG initiatives. In this process we also encourage them to disclose their ESG initiatives publicly
- Screening: The Screening process is similar to that we use in Listed Equities. We include ESG assessment in the first stage of the initiation of a company under our coverage and check the score against a set threshold. We take decisions to invest accordingly.
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