ESG Integration: Corporate fixed income securities represent a small percentage of assets under management at Boston Trust Walden (less than 2%) and are mostly held within balanced (or multi asset) portfolios. The great majority of issuers purchased are the same companies in which we currently hold (or previously have held) stock. Hence, ESG screening and integration incorporation strategies apply in the same manner as described under listed equity incorporation (LEI). In addition, we note the emergence of thematic investing within this category, as opportunities are increasingly available to invest in corporates with specific ESG objectives.
Active Ownership: Engagement associated with Fixed Income Corporate investments relates to the overlap with equity holdings and therefore is covered under Listed Equity Active Ownership (LEA). We generally do not attempt to engage with companies exclusively in our capacity as fixed income investors, as we believe this approach would be both inefficient and less effective than utilizing the greater leverage associated with stock ownership.