Individual investment strategies, the GS team and the Stewardship Committee all play a role in assessing outcomes of our stewardship activities. This refers to examining whether we have been successful in meeting our engagement objectives. These matters will be reported to clients and also feature within our public disclosure.
While we believe that ESG factors can have a material impact on bond prices over time we do not systematically measure the contribution of our ESG analysis per se to investment performance. The link between ESG analysis and investment outcomes is challenging to assess because it is unclear how best to isolate and measure the return generated from integrating ESG analysis from other types of analysis applied by the team. The heterogenous nature of ESG factors and the challenge of making comparisons across different sectors, geographies and asset classes further complicate the measurement of their impact. In order to further develop our approach to ESG portfolio analysis, our Data Science team have built a data portal accessible by all investment staff. The intention is to further develop this tool to enable comparison of our portfolios' ESG profiles (using third party ESG ratings data) with those of comparable benchmarks.