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.
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