Published on October 10, 2022

In this video, Venk Reddy, CIO of Sustainable Credit, explains how the team views ESG factors as risks, similar to other business risks, and that considering them is key to delivering a portfolio that meets their fundamental mandate.

Transcript

The way we think about it, if you are going to do fundamental analysis the way we do, you want to consider the largest set of risks that you can realistically consider because your biggest risk in fixed income is the thing you don't know about. There's asymmetry to the downside. Right? You get your coupon if things work out and you have a big credit event if things don't work out. So, the goal is to mitigate risk, and the more risks you consider, the better. And ESG risks are risks. They're definitively risks to a business. And for us, considering them alongside every other risk we consider is key to delivering a portfolio that meets its fundamental mandate.

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