While the consideration of ESG factors has traditionally fallen under the purview of active equity investors with a greater ability to influence outcomes, we believe that credit and other minority investors also have an obligation to take into account ESG factors. In evaluating minority investments, teams:
- Examine the impact a company has on society and the environment during the diligence process. Where applicable, take into consideration not only the specific products or services a company provides, but also the manner in which it does business and conducts itself in the broader world.
- Seek to comprehend and consider ESG factors from a company-specific and sector-wide perspective.
- Encourage companies, where appropriate, to adopt responsible practices and promote transparency.
- Treat the responsibility of acting as a shareholder seriously and continue to diligence holdings throughout the course of ownership.
- Engage companies via proxy voting, corporate actions and board seats, where applicable.
- In certain funds, utilize a negative screen to avoid investing in companies having more than 10% of their revenue in gaming, munitions, alcohol, tobacco and adult entertainment to comply with Shariah Compliant Investment.