Sustainability encompasses the protection of the natural world and intergenerational equity, tangible concepts fundamental to our economic wellbeing and successful long-term investment. We work with clients to help meet their sustainability needs, while applying the core principles of sustainable investment.
We aim to create positive change and influence on ESG factors. From an investment perspective sustainable companies can be potentially more robust and resilient. We believe consideration of ESG has the biggest impact when fully integrated into the investment process. Our investment professionals seek to actively engage with companies on sustainability risks and opportunities to understand how ESG factors drive risk and return.
To view Muzinich’s Responsible Investment Policy click here.
- Responsible investment is firmly aligned with our fiduciary duty as a manager of corporate credit
- Systematic integration of important environmental, social and governance (ESG) factors provides valuable insight into drivers of business risk and could contribute to better long-term risk-adjusted returns
- Constructive dialogue or engagement with companies in our investment universe helps us to actively identify, monitor and manage ESG and financial risks
- It is important to tailor specific responsible investment approaches to the different types of corporate credit in which we invest
- Working in partnership with investors enables us to offer innovative solutions to address both financial and non-financial investment objectives
Key Milestones & Recent Commitments
- Majority of Muzinich UCITS Funds classified as Article 8 under EU Sustainable Finance Disclosure Regulation*; Signed up to the Net Zero Asset Managers Initiative.
- PRI assessment scores (2020): Strategy & Governance: A+ Fixed Income (Financials & Corporates): A, A; Supported Climate Action 100+ initiative participating in five corporate engagements on climate change; Supported the Task Force on Climate-related Financial Disclosures (TCFD) initiative; Joined Investment Company Institute (ICI) ESG Task Force; Joined the Taskforce for Scaling Voluntary Carbon Markets; A detailed explanation of the PRI’s assessment methodology is available by clicking here.
- Implemented carbon emissions reporting on a selection of portfolios; Muzinich & Co. Limited Co-Founded the European Leveraged Finance Association (ELFA) and joined ELFA’s ESG Working Group
- Launched ESG ‘best-in-class’** strategy; Partnered with Sustainalytics
- Signed the United Nations-supported Principles for Responsible Investment (PRI)
- Onboarded first accounts with socially responsible exclusions
*UCITS funds are based in the European Union. Units have not and will not be registered in the United States under any applicable legislation. Units are not available for offer or sale in any state in the United States, or to persons (including companies, partnerships, trusts or other entities) who are “US Persons” (as defined in Rule 902 of Regulation S under the Securities Act), nor may Units be owned or otherwise held by such persons.
** ESG best-in-class is defined as the explicit inclusion of certain securities in an investment universe based on certain predetermined ESG metrics of the issuing entity and/or their related products and services.
Muzinich views and opinions subject to change without notice and not to be taken as or construed as investment advice or an offer. The Principals of Responsible Investing (PRI) Assessment is based on information provided by PRI signatories, like Muzinich & Co., Inc. If you have any questions regarding the assessment, please contact Muzinich. The PRI Assessments are not validated by a third party and are not indicative of being compared to other advisers. Signatories report on their responsible investment activities by responding to asset-specific modules in the Reporting Framework. Each module houses a variety of indicators that address specific topics of responsible investment. Signatories’ answers are then assessed, and results are compiled into an Assessment Report. The Assessment Report includes indicator, section, and module scores. Signatories are provided an PRI Assessment Score of A through E on an annual basis. Such assessments are granted by the PRI based on six broad ranges to be assigned based on the score in a specific module. A module score of 95% or higher is A+, 76-94% is A, 41-75% B, 26-50% C, 1-25% D and 0% E. Each module contains core and addition assessed indicators. The Strategy and Governance Assessment Score has the following sections, Responsible Investing Policy, Objective and Strategies, Governance & Human Resources, Promoting Responsible Investing, ESG Issues in Asset Allocation and Assurance of Responses. Fixed Income Corporate (Financials) and Fixed Income Corporate (Non-Financial) Assessment Score has Implementation Processes, Implementation Screening, Implementation Thematic, Implementation Integration, Engagement, Outputs and Outcomes and Communication.