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Partners Group AG

PRI reporting framework 2020

Export Public Responses

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

Due to the relatively lower levels of influence and governance rights, the predominant strategy in our fixed income investments is positive and negative screening, and norms-based screening as appropriate, as well as pre-issuance engagement with borrowers. We evaluate performance on the most material ESG factors for a given company during the due diligence process so that we can engage with the sponsor to mitigate investment and reputational risk. We then monitor our fixed income holdings during the ownership period for any adverse ESG-related incidents and engage with the lead sponsor accordingly. To help us monitor these investments systematically, we use our Primera Insights AI tool to flag any ESG issues related to our investments.

01.3. Additional information [Optional].

FI 02. ESG issues and issuer research (Private)

FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

03.2. Describe how your ESG information or analysis is shared among your investment team.

03.3. Additional information. [Optional]

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.