ESG & Impact Investing
Integration as Alpha and Risk Control
We treat ESG not as a separate product line but as an essential element of both risk control and Alpha generation, integrated directly into our Multi-Factor Models. This involves negative screening and an emphasis on active Stewardship.
Framework Alignment and Disclosure
We are committed to aligning our reporting with ISSB/TCFD information architecture. Crucially, we support specific client mandates by offering full mapping capabilities for SFDR Principal Adverse Impacts (PAI) and relevant criteria within the EU Taxonomy.
Advanced Measurement Metrics
We utilize quantifiable metrics for disclosure and monitoring, including:
- Climate: Portfolio Carbon Intensity and Temperature Alignment estimation.
- Social/Governance: NLP-based controversy detection for legal/compliance events and tracking of board independence/diversity.
The Client Implementation Path (5 Steps):
- Baseline Measurement: Assessing the existing ESG footprint and controversy profile.
- Goal Setting: Defining mandatory/voluntary targets (e.g., Net Zero timelines, emission reduction rates).
- Portfolio Engineering: Structuring the portfolio around the Risk-Adjusted Return goal using themed “buckets.”
- Monitoring & Review: Quarterly review of KPIs, issuing abnormal warnings, and triggering necessary de-risking actions.
- Disclosure & Audit: Providing monthly/quarterly reports, year-end Impact Reports, and supporting independent external assurance.