Consideration of ESG issues is an integral part of our investment process, which we have developed to align with the PRI.
Our investment teams are responsible for taking ESG considerations into account when performing due diligence on investments.
These assessments form an important input for the portfolio manager and into the discussions held by the investment committees in reaching a decision whether to invest.
We then monitor our portfolio for a wide range of risks, including those related to ESG, and we engage with managers or companies by offering advice on further ESG integration.
In addition, we conduct bespoke ESG monitoring for certain clients to confirm compliance with their specific ethical frameworks.
Processes to integrate ESG principles across various assets classes
We have developed processes to integrate ESG principles according to the requirements of the various assets classes and investment structures.
For example, for our private equity, hedge fund and multi-manager long-only portfolios, we focus on individual security selection, and we have considerably more information available for making an ESG assessment.
This has enabled us to develop a proprietary tool, known as the “ESG Cockpit” for identifying and assessing the ESG risks and opportunities of each holding in these portfolios.