Saltus assesses and ranks the following factors in an investment research note to determine an ESG score for each investment:
- Beliefs – what does the manager personally believe, and how do they see their role within this context?
- Process – is there a process which takes ESG into consideration? Is it firm wide, or specific to the fund manager? Is it explicit?
- Risk – what benefits/limitations does the asset class provide with regards to sustainable investing?
- Evidence/Statistics – is there any evidence that the manager’s ESG objectives are bringing about change?