This report shows public data only. Is this your organisation? If so, login here to view your full report.
You are in Strategy and Governance » Asset class implementation not reported in other modules
Describe what processes are in place and the outputs or outcomes achieved
For sovereign debt analysis SVM utilises external sources such as the OECD to reflect the principles of our ESG house template into country research allowing us to integrate environmental, societal and governance concerns into the fixed income investment process. Engagement at a governmental level is seen as ineffective for a company the size of SVM and we channel any relevant issues through the engagement process we conduct with opinion formers and influencers in the corporate world and seek feedback where appropriate.
We adopt the same approach as we do for our listed equities. This involves the completion for every investment of an ESG template which encompasses a broad range of ESG metrics. This in turn allows us to place an ESG score on each investment which reflects the risk profile of the companies involved. This allows investment managers to incorporate ESG risk or opportunity into their investment process by way of an enhanced discount factor, adjusted valuation multiple and/or portfolio weighting. Furthermore, the data and scores can be aggregated to the portfolio level to give the individual managers a top down view of their portfolio from an ESG perspective.