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Boston Trust Walden

PRI reporting framework 2020

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.
0 Screening alone
55 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
45 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.

The approximate 14% of assets under management that constitute SSA bonds are primarily U.S. Agency notes and municipal bonds. Because we purchase investment grade securities, thematic and screening approaches are the focus of fixed income incorporation strategies.

Thematic: At the national level, Boston Trust Walden focuses on notes of U.S. government sponsored enterprises, most commonly Federal National Mortgage Association and Federal Home Loan Bank securities that support the financing of housing and community lending. We also hold Federal Farm Credit Bank securities, a leading financer of agriculture and rural communities. Municipal securities support infrastructure development, housing, education, healthcare, as well as projects with environmental benefits. For example, MA Commonwealth Green bonds held in many client portfolios fund stormwater projects, energy efficiency and conservation in Massachusetts buildings, open space protection and environmental remediation, and river revitalization and habitat restoration projects. In a few instances, green bonds have also been purchased from supranational organizations (e.g. World Bank) and other sovereign states.

SSA screening: As appropriate, we apply screens to achieve any unique environmental and social objectives of our clients. For example, some clients rule out investment in general obligations of the U.S. Treasury or securities that fund specific projects such as prisons.

01.3. Additional information [Optional].

FI 02. ESG issues and issuer research

02.1. Indicate which ESG factors you systematically research as part of your analysis on issuers.

Select all that apply
Environmental data
Social data
Governance data

02.2. Indicate what format your ESG information comes in and where you typically source it

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

specify description

          NGOs with knowledge of country-specific risks.

02.3. Provide a brief description of the ESG information used, highlighting any differences in sources of information across your ESG incorporation strategies.

Given our investment focus on U.S. government sponsored enterprises, our main source of ESG information is issuer documentation, supplemented by primary research from the Boston Trust Walden in-house ESG and traditional analysts, as needed. The same information sources apply on occasions when we invest in non-U.S. fixed income securities, but we may also call upon NGOs with significant expertise and knowledge about unique country level risks and opportunities.  

02.4. Additional information. [Optional]

The sources of ESG factors selected above also apply to purchases of Fixed Income Corporates, which comprise less than 2% of assets under management (as previously described). Boxes checked that refer to company research processes were completed with these fixed income corporate bonds in mind, as company research does not apply to SSA bonds. 

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]

Boston Trust Walden monitors issuer information relevant to investment in SSA fixed income securities. However, given our focus on high quality U.S. government issuers of securities that have direct, positive impacts such as Federal Home Loan Bank notes or infrastructure funding muni bonds, we rarely experience concerns related to monitoring or updating ESG analysis of these investments.