In order to work into our overall best-in-class approach, our ESG integration strategy is based on an ESG rating threshold, directing investments to issuers who are performing well from an ESG perspective relative it's sector. We can occationally invest in bonds from issuers that fall below this threshold, but that is linked to commitments of company dialogue to promote improvements in their sustainability efforts.
We also perform a biannual norms-based screening that include our corporate bonds. Confirmed breaches of norms can lead to divestment and future exclusions if the company does not respond well to dialogue. Considering the duration of the bond we evaluate how a divestment plan best can be carried out with the best interest of our beneficiaries in mind.
As of 2018 we also apply a climate related screen considering high emission sectors and the exclusion of thermal coal (10 % threshold).
AMF use a pre-trade compliance program in our trading system to reduce the risk of anyone investing in a red flagged issuer.