ESG issues are fully integrated in their investment process in number of ways.The frequency and degree to decision differ based on the type of company and its circumstances.
For example, Stewart Investors stated that portfolios are constructed with a long-term investment horizon in mind, typically increasing exposure as we engage and deepen further our company relationships.
Our FSSA team's portfolio construction and the weights of individual holdings are determined by their level of conviction, which is rooted in the quality of the company and its valuation. ESG is fully incorporated into our assessment of quality and thus is reflected in portfolio weightings.
The Global Listed Property Securities team states that ESG factors are used to screen our investible universe and determine Total Return Expectation of a stock
Global Listed Infrastructure Securities team stated that it is integrated through the Quality Ranking Model which consists of 25 qualitative criteria that they believe influence stock returns in general and infrastructure securities in particular with ESG accounting for 24% of the overall quality score.
Australian Small Cap team stated that ESG and sustainability factors are quantified and can influence other factors, most directly in the valuation and financials of the stock.