On a quarterly basis, the investment staff will review all rated positions in the portfolio and determine if the portfolio is meeting the standards set by the CIO. The portfolio must meet the following standards (1) more than 50% of the portfolio must be rated (2) all rated positions must have an average BBB ESG rating or above.
These standards are executed and monitored by the staff. More specifically, the staff will calculate the portfolio ESG rating using the MSCI ESG rating database and internal settled positions report of the portfolio. Should the portfolio not meet these standards, there are three outcomes set in place to reach compliance.