ESG factors are integral to our investment process.
Thornburg’s fundamental research framework fully integrates material ESG factors that can influence investment return and risk. In constructing portfolios our high-conviction approach is clearly demonstrated in the intense review of proprietary ESG criteria we employ on each security.
We believe that environmental, social and governance (ESG) issues influence investment risk and return, and, therefore, we seek to incorporate ESG factors that materially impact the investment outcome within our proprietary fundamental investment process.
Assess Material ESG Factors
Seek deep understanding of material ESG factors to fully integrate within risk and return framework.
Review company data and public filings to explore perspective and action taken on each ESG issue identified; and assess strategy execution risk.
Capture and document strategy for managing material ESG risk factors and Thornburg assessment.
Manage Stewardship Plan
Establish opportunities for company engagement by crafting a stewardship plan for each position.
Vote company proxy with purpose and deliver transparency.
Monitor ESG risks, disclosure and reporting, tracking performance over medium- and long-term horizons.
Investment Process with ESG Integrated
We evaluate material ESG risks and opportunities for each company
within the essential, relevant sector and industry context.