Fixed income deal teams are required to complete an ESG due diligence assessment for every investment, specific to the industry in which the company operates. Historically, these assessments have been a mandatory feature in every investment committee submission that passes the second out of four investment gates in our process. This year, the ESG team worked closely with the FI team to develop a new investment memo template that incorporates ESG considerations at the very first stage in the IC process. This new template provides a framework for investment teams to identify risks as early in the IC process as possible and present their ESG thesis to the Global Investment Committee during the first IC discussion of the deal.
The investment committee rates deal teams on the quality of their submissions, including the ESG DD assessment. Minutes from investment committee discussions, including those focused on material ESG topics, are included in subsequent versions of the investment committee papers.