As bottom-up investors, Pender’s ESG factor analysis is an integral part of our investment process and is consistent with our investment philosophy. It helps us to understand the quality of a business or security and to determine factors that may impact value, deployment of capital, and mitigate downside risk. We believe that accessing corporate ESG data that is comparable, consistent and material can be critical to long-term enterprise value creation.
All Pender mandates incorporate Responsible Investing integration. Some of our mandates may contain additional ESG strategies including some of the following:
Signatories uphold six key principles, including incorporating ESG issues into investment processes and ownership policies and practices; seeking appropriate disclosure on ESG issues by the entities in which we invest; promote ESG implementation and collaborate within the investment industry to enhance effectiveness; and engage in regular ESG reporting.
ESG is an integral part of our due diligence. We have adopted the Sustainable Accounting Standards Board (SASB) framework into a proprietary ESG scoring template. Scores are used to inform portfolio weightings. Where needed and possible, we engage with the company.
After considering external factors such as industry reports and research, the Fixed Income team applies a comprehensive due diligence checklist to a prospective security, which includes positive and negative screening factors. ESG considerations help them with their goal of maximising yield per unit of risk.
ESG criteria are central to the investment decisions made. We are looking for companies that align with our focus on better lives, better planet and better inclusiveness. Once we have invested we actively engage with our portfolio companies to affect positive outcomes.
PenderFund Capital Management was included in the list of finalists for the Alternatives category. From a pool of 60 proposals, 11 candidates were chosen based on their ESG and financial performance scores.
This online session from Pender’s 2021 Investment Conference covered how to discern a truly integrated ESG approach from “greenwashing”.