The combination of screening and integration of ESG factors is a critical component to identifying and managing the credit risk associated with our investment agent, BCI's, fixed income holdings. Screening from BCI's vendors provides an initial high level overview of ESG issues with specific issuers. As BCI delves deeper into potential investment opportunities, integration becomes a more critical component of its process and allows BCI to identify further issues and provide insights into the company's performance.
For mortgage holdings, BCI has developed a risk rating process that incorporates ESG factors as a contributor to the evaluation and pricing methodologies when identifying and managing credit risk. This process continues to evolve as new information becomes available. Integration of new strategies are tested and reviewed before implementation.