The Importance of ESG at Western Asset
Environmental, social and governance (ESG) investing has been a key tenet of Western Asset's long-term fundamental value philosophy for many years. Western Asset seeks to invest in a diversified set of opportunities that will deliver superior risk-adjusted returns for its clients over the long term. When analyzing these opportunities, Western Asset's investment professionals consider many factors that may impact future cash flow. These factors include ESG concerns that can affect the risk and return profile of its investments.
As a signatory to the United Nations-supported Principles for Responsible Investment (PRI) Initiative, Western Asset works alongside other institutional investors around the globe to advance PRI's "Principles for Responsible Investment." These shared goals include enhancing the integration of ESG into the investment process, increasing the quality of non-financial disclosures by issuers, engaging with management to improve ESG performance, and elevating awareness and acceptance of ESG through collaborative initiatives. In accordance with the principles, Western Asset reports annually and is evaluated by PRI on its activities and progress toward these goals.
Are You Considering ESG?
Many asset owners are currently considering whether and how to incorporate ESG into their fixed-income portfolios. Issues commonly explored in this process include: What is the relevance of ESG to bondholders? What ESG factors matter? How can the ESG quality of fixed-income portfolios be measured? How specifically should ESG be applied to fixed-income portfolios?
As a global fixed-income specialist, Western Asset has helped many clients think through these issues. Please contact us if you would like further information.
Global Head of ESG Investments firstname.lastname@example.org