We have provided an extensive description of our fund selection process in order to identify funds that are rated as ESG by well trusted independent European and global organizations or government agencies in a previous section (in the 00 range) as well as funds that are ESG compliant. For such funds we assign a lower score of 66 versus a 100 score for the ESG rated funds. Our quantitative model and the qualitative fund selection tools are then applied in order to select the best funds for each asset class or sector. A further level of signalling are the Mercer ESG ratings from Morningstar as well as the ratings given to the funds under scrutiny by the Fund Selection process followed by our Fund of Funds and Fund Selection team which produces an ESG focused ranking list.
Furthermore, we rely upon our co-operating external managers to engage directly with sovereign and supra-national issuers in order to assess use of proceeds. In order to ensure the integrity of the process we have engaged with the sustainability analysis teams of our co-operating external managers as well as with the dedicated portfolio managers who implement such analysis in the security selection.