The information in this section reflects Calvert as well as the collaboration of EVM's Investment Grade Fixed Income team.
The Calvert Research System (CRS) is Calvert’s proprietary platform that is optimally engineered to capture multiple sources of ESG data and evaluate information through the perspectives of their ESG analysts' deep ESG expertise. Calvert applys a streamlined investment decision-making process that integrates both financial and sustainability insights and compares companies across these metrics. During the reporting period, Calvert’s team of ESG research analysts led this process and worked closely with fixed income and equity investment analysts to identify the most material ESG factors and data indicators for each sub-industry.
Calvert collaboration of EVM's Investment Grade Fixed Income team uses detailed scoring models that incorporate the best available information to review each potential investment. They then rate and rank companies within their sub-industries and normalize these results to include several relative ESG risk factors, ultimately producing an assessment that reflects both peer-relative and absolute performance in a defined index universe. Only companies that satisfy the team's standards for ESG performance are included in Calvert’s mutual funds and separate accounts that seek to follow the Calvert Principles.
As part of this process, the team bases their investments on the Calvert Principles for Responsible Investment, which encompasses positive screening as well as norms-based screening. These Principles guide the team's selection of companies for all Calvert’s Responsible Indexed investment strategies, and many of their actively managed strategies. They seek to invest in companies that provide positive leadership in the areas of their business operations and overall activities that are material to improving societal outcomes, including those that will affect future generations. Specifically, they address advancing sustainability and resource efficiency; contributing to equitable societies and respecting human rights; and seek accountable governance and building transparency. The applications generally preclude companies with poor ESG performance. Full details can be found at: https://www.calvert.com/the-calvert-principles.php
Additional Information: The Calvert Principles for Responsible Investment take into account norms of the Universal Declaration of Human Rights and the International Labour Organization Conventions as part of their review when assessing a company. Calvert also considers the Treaty on Conventional Armed Forces and UN Register on Convention Arms as part of its analysis for weapons.