At Calvert, the Calvert Principles for Responsible Investment provide a framework for the research process and evaluation of issuers. As noted in that document, Calvert's commitment to these Principles signifies continuing focus on investing in issuers with demonstrated responsibility and sustainability characteristics. The application of the Calvert Principles generally precludes investments in issuers with particularly risky/detrimental operations/activities. The full list of such operations/activities can be found at https://www.calvert.com/media/34498.pdf.
As a responsible investor, Calvert clients invest in issuers that provide positive leadership in the areas of their operations and overall activities that are material to improving societal outcomes, including those that will affect future generations. Calvert seeks to invest in issuers that balance the needs of financial and nonfinancial stakeholders and demonstrate a commitment to the global commons, as well as to the rights of individuals and communities.
The Calvert Principles provide a framework for Calvert's evaluation of investments and guide Calvert's stewardship on behalf of clients through active engagement with issuers.The Calvert Principles seek to identify companies and other issuers that operate in a manner that is consistent with or promote: environmental sustainability and resource efficiency; equitable societies and respect for human rights; and accountable governance and transparency. The principles articulated in this document are based on the UN Global Compact and other global norms related to responsible corporate behavior. Calvert believes that most corporations and other issuers of securities deliver a net benefit to society, through their products and services, creation of jobs and the sum of their behaviors.
In the event that there are any changes to the Calvert Principles, they will need to be approved by the Board of Trustees for the Calvert Funds. Updated information would then be publicly shared on Calvert's website and with clients as appropriate.
For a separate account mandate, Parametric has the ability to incorporate ESG screens into the portfolio construction process. The firm currently utilizes ESG business involvement and scoring data from dedicated third-party providers, including MSCI, Sustainalytics, IWP Capital and JLens, which is incorporated into the rules-based implementation of a portfolio. Parametric offers over 40 standard screens including the following:
- Faith-based (including Catholic Values, Baptist Values, Jewish Values, and Shariah Compliance)
- Environment (including Fossil Fuels, Carbon Intensity, and Factory Farming)
- ESG Controversies (including human rights and labor rights)
- Sanctions (including Iran, Sudan)
- Global Norms (including United Nations Global Compact)
- Governance - Gender Diversity
- Social (including Abortion, Animal Welfare, Firearms, Gambling, and Tobacco)
- Sectors and Industries (both US and Global)
Parametric also works with clients to implement custom restriction lists from other data providers. The proprietary systems are designed to provide clients with a high degree of customization and allow account-specific restrictions to be enforced and monitored on an ongoing basis.