Sustainability at Aristotle Credit
At Aristotle Credit we engage in responsible investment because we believe that integrating ESG factors into our investment analysis, engagement and impact monitoring practices can positively influence corporate sustainability while enhancing our credit selection process and risk-adjusted performance.
ESG factors are integrated into our fundamental credit research process to select credits that meet our investment objectives while seeking to provide the greatest positive ESG impact on the portfolio.
This process, incorporated across all our strategies, includes positive ESG integration, negative screening and proactive engagement with the management teams of companies to more accurately assess ESG metrics & qualitative considerations.
We focus on investing in companies that disclose ESG data, possess higher ESG scores relative to their peers and show the propensity to improve ESG disclosure and scores over time.
Our negative screens fall into two areas: (1) select industries that are prohibited as they are deemed to cause great harm to human life or the environment; and (2) companies that perform negatively against international norms and standards.
Certain industries require additional review given their market and ESG impact.
We engage directly with senior management teams of corporate bond issuers to not only improve our understanding of the overall credit risk of an opportunity, but also to understand the unique ESG risks to which the company may be exposed. To supplement the direct engagement undertaken in our investment process, we also participate in a number of investor pools managed by third-party service providers.