Responsible Investing

Responsible Investing

Responsible investing involves incorporating Environmental, Social, and Governance (ESG) considerations in our investment decision making process.

ESG factors and our investment process

ESG considerations help us better understand, evaluate and anticipate certain non-financial risks consistent with our dedication to act solely in the best interest of our clients. We also seek to incorporate ESG best practices in our firm-level management.

ESG Best Practices and Firm Management

On behalf of the firm, our employees, our clients, and our shareholders, we identify ESG risks and rewards while seeking to achieve attractive risk adjusted returns in our investment funds.

View ESG Policy

photo for ESG factors and our investment process

Multi-Strategy and Credit

The Firm utilizes third party research and reporting to provide its investment professionals with market-leading and company-specific ESG research in a standardized and repeatable format. This research allows our investment professionals access to in depth ESG analysis on over 7,000 companies globally helping shape our view of the risk-reward opportunity when investing in them. To the extent research is available, our investment team formally documents its consideration of ESG risk and reward in conjunction with the overall investment thesis taking into account all economic and non-economic factors impacting a potential investment decision.

Sculptor investment professionals access in-depth ESG analysis on over 7,000 companies globally.

Environmental

Carbon gas emissions

Fossil fuel dependence

Climate change

Water issues

Clean and renewable energy

Social

Workforce diversity

Fair trade

Human rights

Fair wages

Working conditions

Governance

Reporting transparency

Executive compensation

Equitability of compensation

Board accountability and composition

Director independence

Shareholder rights

Auditor independence

Voting practices

Accounting practices and policies

Real Estate

Sculptor’s Real Estate investment professionals actively consider ESG risks when evaluating investment opportunities and formally memorialize the consideration of these factors into each investment thesis.  Considering ESG in connection with real estate investments is especially important given the impact that a new or existing real estate project can have on the environment and community and the resultant potential implications on our investment thesis.  The real estate team uses a variety of research and investment sources to evaluate ESG risk and reward.

Example ESG factors our real estate team evaluates and considers include:

Environmental conditions

Resource consumption

Environmental impact and resiliency

Code and ordinance compliance

Engagement opportunities

Economic and social development impact

Labor, health and safety factors affecting community/other stakeholders

Ethical operator business practices

Ongoing Monitoring and Training

Database Recording

Investment level analysis is documented and recorded in a centralized and dynamic database

Quarterly Monitor

ESG scores are reviewed quarterly for changes that may impact an investment thesis

Committee Review

Responsible Investing policy, procedures, and implementation across investment solutions are reviewed by various Sculptor committees

Training Program

Training is made available to investment professionals and others impacted by Sculptor’s Responsible Investing Policies and Procedures