Incorporation of ESG factors into the Investment Process
Atlantic focuses on the key ESG factors that could affect the ability of a company to repay its debt both willingly and timeously. Our analysts use Integrated Annual Reports, broker thematic research, Bloomberg Sustainability Factors, industry reports, heat maps, internal ranking tables and credit agency reports to distinguish between the leaders, followers and those companies whose integration of ESG into their business is merely inadequate. We expect investee companies to disclose all relevant ESG data in their Integrated Annual Reports. Furthermore we support various industry initiatives such as the Impact Reporting Investment Standards (IRIS) and the Carbon Disclosure Project (CDP) to ensure that information within the ESG environment is sufficient for meaningful analysis.
Atlantic’s investments are predominantly fixed income and debt finance in nature. As debt holders the responsible ownership practises of proxy-voting is currently not a tool that Atlantic can use to address ESG concerns and therefore Atlantic’s main frontiers with respect to responsible ownership are engagement, collaboration and industry leadership.
Our analysts meet company management regularly and are able to engage on issues related to the environment, social matters as well as good governance.
We are more than willing to collaborate with industry initiatives and co-investors on any material issues that will drive change in these important areas.
Atlantic plays a leadership role within the responsible investing space. Atlantic’s employees are represented on the Association for Savings and Investment South Africa (ASISA) Responsible Investment Committee, the ASISA Infrastructure Investment Workgroup as well as the CRISA committee and are regularly invited to speak at Responsible Investing events.
Atlantic has implemented an Atlantic Conflict of Interest Policy which is updated annually.
Atlantic will report annually on our progress and performance regarding Responsible Investing.