As part of our Annual Review of all International Listed Equities Managers we applied our proprietary ESG ratings model to all international listed equity managers. We review ESG integration processes and in this way we are able to guage the level of active engagement, incorporation of issues that pertain to specific sectors and how these will impact stock weightings. This is one part of a comprehensive process which looks at all aspects of Policy, Integration, Innovation, Active Ownership and ESG Quality.
Qualitative ESG aspects are converted to quantitative scores. We then correlate this with investment performance over time and have built data sets to prove the hypothesis that good ESG integration can lead to long term sustainable performance.