Page 7 - Equus - Intoductory Book
P. 7
Environmental
We analyze how a municipal issuer impacts the local and global environment. Certain sectors, such as utilities, transportation, housing, and city projects require an extra layer of review to understand whether the issuer has an environmental risk framework.
Our ESG Framework
ESG is the process of considering how environmental, social, and governance risks impact an investment. The ESG process has become trendy in the investment world, but as municipal investors, we have been incorporating these risks into our analysis for over a decade. Some of the characteristics we analyze include social impact, sustainability plans, financial transparency, and management teams that support these initiatives.
Social
Municipal bonds were created for positive social impact. We dig down to comprehend exactly who and how an issuer benefits a community. Does this issue support job growth and income equality? Is there public support for the project?
Governance
We interview and scrutinize management teams to confirm that they have sound governance practices in place. Is the issuer reporting on time? Is there any data missing? Do they value diversity?
