Environmental, Social and Governance (ESG) Investment Risk Management relates to how BlueBay incorporates ESG factors into its investment processes.
Investment analysis of non-financial factors – commonly referred to as ESG factors – encompasses those aspects of an issuer’s operations that influence its ability to meet its financial obligations.
These ESG-related risks (and opportunities) will vary by country, industry and by characteristics specific to an issuer, such as size and geographical footprint. However examples of each type of ESG risk could include the following:
Climate change potentially raises the risk of natural commodities like oil & gas, or coal being ‘stranded’ due to regulation which prevents them from being developed
Unethical and unsafe supply chain practice can pose a potential security of supply risk for retailers and manufacturers if a supplier's facilities are shut down or impacted by accidents
Lack of appropriate board oversight and decision-making structures can undermine investor confidence in management
For information about BlueBay’s approach to its day-to-day activities with regards to staff, the marketplace, community and the environment, please refer to our Corporate Responsibility section.
For more information about BlueBay's governance structure please visit the Corporate Governance page.
For enquires about our ESG investment risk mangement email us.