Out of large and evolving set of ESG risks and opportunities, our Squared Scores™ applies a focused approach narrowing down the scope to financially relevant ESG signals.
Materiality
While a myriad of ESG data is available, we aim to identify the data points that are most likely to be material to a company's valuation.
Climate Change
Climate change creates risks and opportunities for investors. At the portfolio level, climate risk will have a disproportionate impact across asset classes. Our investment approach integrates a long-term view on climate risk through our global macro model, combined with a bottom up approach supporting the transition to a low carbon economy.
Governance
Understanding how a company is run is clearly important to assessing it as a potential investment opportunity. Investors have an important role to play in engaging with companies to help them adopt best practices, to capture opportunities and mitigate risks. We take seriously our responsibility as a steward of the assets. We will engage with companies, using the International Corporate Governance Network (ICGN) Global Stewardship Principles as a guiding framework.
Human Capital & Technology
Human capital and technology are a key focus of V-Square, as we look to assess the strength of companies holistically. A company's ability to create value, hold financial sustainability, remain relevant, and grow cannot be achieved without maintaining sustainable human capital practices whilst capitalising on new technologies. We seek to identify data related to material human capital and technology factors and integrate these metrics into its investment decision-making process.