The Loomis Sayles Global Fixed Income Team has taken ESG seriously since before the term became popular. To the extent that environmental, social and governance policies are material, the team has always weighed their impact in analyzing the value of a business. But two things have changed:
- The team now incorporates more sophisticated tools for measuring and ranking ESG performance at the issuer level.
- As investors place added importance on ESG factors, particularly climate change, bond issuers with weaker ESG scores will be forced to pay a premium to sell their bonds.
In this new report, the Loomis Sayles Global Fixed Income Team explains its ESG positioning in greater detail, including:
- The team’s ESG philosophy
- ESG integration and engagement
- ESG in portfolio construction
- The significance of climate change