ESG & Sustainable Investing

This paper addresses how we think about ESG factors in relation to ABS investments at TwentyFour in more detail, given the unique nature of the asset class, but within the established framework that is in place across all the investment teams.

The active versus passive management debate is well documented, but with ESG or sustainable investing the debate takes on a new dimension.

At TwentyFour we regard ‘momentum’ as one of the most underestimated factors in promoting progress on environmental, social and governance (ESG) issues. Our view is capital markets should support rather than shun a company if it has a credible plan to improve in a key area or areas.

National Grid plc, which has been squabbling with UK energy regulator Ofgem over the maximum fine applicable for a series of blackouts on August 9, has compounded its problems with what we would call “unsparing” use of the terms and conditions in its own bond documentation, which disadvantaged holders of its hybrid debt to the tune of €4.8m.