BCI leverages some third party ESG providers as a general approach, and leverage sell-side research that BCI considers to have a strong ESG framework. Furthermore, for higher materiality issues in the bond space, BCI's Public Markets ESG team is engaged for in-house views and reviews.
For Private Credit, all new potential investments seek an ESG review from BCI's in-house team no matter the materiality threshold. When opportunities arise, BCI performs an initial assessment of the creditworthiness of a borrower. If the opportunity passes this initial test, it is then subjected to more intensive due diligence, including ESG considerations, and ultimately presented to a formal credit committee that approves the investment. Each investment recommendation includes an ESG section. BCI has passed on certain investments due to ESG concerns.