Our ESG scoring approach assigns scores between 1 (low ESG risk) and 6 (high ESG risk) to each asset. The total portfolio exposure to each score is subject to defined limits, reflective of our risk appetite.
Through our investment activities, we are exposed to Environmental, Social & Governance (ESG) investment risks across industries, sectors, geographies and financial instruments. We understand that the cumulative effect of such risks can have substantial implications for Athora’s financial performance and solvency. We therefore ensure that sustainability risks and opportunities are appropriately considered in our investment activities, from the early due-diligence stage to the continuous monitoring post acquisition.
Our ESG Investment Risk policy supports the delivery of an effective ESG investment risk management system that comprises strategies, processes and reporting procedures to measure and report on the financial impact of sustainability, nature- and climate-related risks. Furthermore, it governs our responsible corporate behaviour towards the integration of ESG investment risk factors through ESG scoring, stress test analysis and scenario analysis.
Our ESG scoring approach assigns scores to each asset, where sector and sovereign scores are allocated based on the ESG Risk Atlas from S&P Global Market Intelligence.