The managers are reviewed thoroughly as part of the due diligence and selection process. This includes acitivities and expectations around stewardship activitities, being active owners, engagement and voting requirements.
When determining whether a manager should be recommended for use in the portfolio, the consultant rates a manager's ESG capabilities in a formal evaluation process. In line with the approach taken to all other aspects of a manager evaluation (e.g. strategy, team, organisation etc), the consultant assigns a peer relative rating to the managers approach to ESG integration. A manager must be considered to be "average" relative to their peer group in relation to ESG (and all other areas) as a minimum to be recommended to a client (in conjunction with being considered as outstanding in other areas).