Should a credit fund manager, who has no proxy voting rights and therefore limited influence, care about whether a company is doing the right thing? After all, their chief fiduciary responsibility is to outperform for clients, and environmental, social and governance (ESG) risks can be seen as secondary considerations.
We have learned, however, that astutely pricing-in ESG factors can be vital in achieving a more comprehensive view of the risks of investing in debt instruments and also in identifying opportunities. Far from being peripheral, ESG risks should be at the core of investment decisions.
Find out more in the latest issue of Spectrum, our global credit newsletter.
Spectrum: why the credit boom is killing conviction