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Boston Trust Walden

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (B) Implementation: Thematic

(B) Implementation: Thematic

FI 07. Thematic investing - overview

07.1. Indicate what proportion of your thematic investments are (totalling up to 100%):

100 %

07.2. Describe your organisation’s approach to thematic fixed income investing

Boston Trust Walden seeks to invest in fixed income securities that have a positive societal benefit. These include green bonds (e.g., NY Metropolitan Transportation Authority Green Bonds that are Climate Bond Certified; Export-Import Bank of Korea Green Bond; North American Development Bank; Mid-American Green Energy Bonds) or municipal securities supporting environmental projects (e.g., Massachusetts and California tax-exempt Green Bonds), health and education (e.g. Massachusetts Health and Educational Facilities), housing, sustainability (e.g. State of Oregon Sustainability Bonds that comport with Green Bonds Principles), water (e.g., Massachusetts Water Authority Green Bonds; Massachusetts Clean Water Trust green bond that finances or refinances costs of wastewater and drinking water projects), and other infrastructure development projects. Recent corporate green bond purchases include issuances from Apple, Bank of America, NSTAR (Eversource), and Verizon.

We conduct our own due diligence on the ESG characteristics of the issuers. Certified green bonds (e.g. Climate Bonds Initiative) are viewed favorably. We have also encouraged robust reporting on impacts, sometimes through investor collaborations. In addition, we believe investments in general obligations of municipalities helps support those local economies.

*While we do invest in specific green bonds and social bonds, in addition to broader sustainability bonds, our system does not allow us to track percentages. Therefore, we have categorized everything under the broader sustainability bonds category.

07.3. Additional information [OPTIONAL]


FI 08. Thematic investing - themed bond processes

08.1. Indicate whether you encourage transparency and disclosure relating to the issuance of themed bonds as per the Green Bonds Principles, Social Bond Principles, or Sustainability Bond Guidelines..

08.2. Describe the actions you take when issuers do not disburse bond proceeds as described in the offering documents.

To our knowledge, this problem has not occurred given the nature of our fixed income investments (primarily U.S. federal and state level government bonds). Green bonds are a relatively small, albeit growing, portion of our fixed income assets, which in turn are a small portion of overall assets under management. As the markets for such bonds expand, we will continue to increase exposure in our clients' portfolios.

In addition, while we do not require issuers to report at least annually, we encourage them to demonstrate impact over time through public reporting.

08.3. Additional information. [Optional]


FI 09. Thematic investing - assessing impact

09.1. Indicate how you assess the environmental or social impact of your thematic investments.

          In-house analysts assess the consistency of thematic investments with client-specific objectives.
        

09.2. Additional information. [Optional]

While we do not require issuers in our portfolios to report at least annually given the nature of our fixed income investments, as appropriate, we encourage issuers to demonstrate impact over time through public reporting. As described throughout our PRI response, we have comprehensive in-house ESG research, integration, and engagement processes, as well as a proprietary method for tracking and measuring impact. 


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