How responsible investing fits into our manager research process

Our commitment to helping our clients meet their responsible investing objectives and social goals is reflected in our status as a UN-PRI signatory. This includes applying either our own or our clients’ ESG evaluation criteria when vetting managers and holdings to identify those dedicated to:

• Investments with strong ESG rankings
• Sustainability measures, such as green business, climate change and supporting minorities in the workplace
• Investment opportunities that benefit social causes or communities, such as community development, low-income housing and faith-based groups

Incorporating ESG into the manager research process

Our rigorous manager research process includes a proprietary ESG ranking system, which forms the basis of our decision to hire a manager that fits our clients’ ESG needs. We consider 3 broad sets of factors in our evaluation:

1. Profile: We analyse the extent of the manager’s sustainability practices in a broad sense, as well as their commitment to responsible investing
2. Resources: We evaluate how well-resourced the manager is to achieve its responsible investing goals (the bridge between words and action)
3. Practices: We assess how the manager actually implements responsible investing in its investment process. This is designed to distinguish responsible investing from “greenwashing,” or presenting false integration of responsible investing practices to attract clients

More specifically, each manager receives multiple scores based on their involvement in promoting sustainable investing, based on the following criteria:

• How the manager handles ESG-related risk and ensures compliance with its ESG policy
• Overall experience with regard to managing ESG-integrated portfolios
• Level of ESG personnel
• Whether the manager generates its ESG-related research internally or relies solely on third-party data providers
• How the manager incorporates ESG at the fundamental analysis level
• Whether the manager engages with companies and management on sustainability
• Whether the manager makes ESG-related reporting available to clients 
• How much ESG factors influence investment decisions
• What plans, if any, the manager has to enhance its ESG efforts over the next three to five years

Find out more about our manager research process and manager research services.

More about UN-PRI

The United Nations-supported Principles for Responsible Investment (PRI) is a growing initiative consisting of international investors that work together on ESG issues, such as human-rights campaigns, environmental concerns, employee diversity and anti-corruption efforts.
As a signatory for The Principles for Responsible Investment, SEI has publicly committed to follow six voluntary guiding principles meant to help incorporate ESG risks into portfolio management and corporate practice. These Principles include:

• Incorporating ESG issues into investment analysis and decision-making processes
• Integrating ESG issues into ownership policies and practices
• Seeking appropriate disclosure on ESG issues by the entities in which firms invest
• Promoting acceptance and implementation of the Principles within the investment industry
• Working together to enhance effectiveness in applying the Principles
• Reporting on activities and progress towards implementing the Principles

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