RESPONSIBILITY OVERVIEW

Advancing Responsibility

MC is committed to being a responsible firm—in how we act and how we invest. We’ll be relentless in ensuring that the path of responsibility leads upward.

Our Vision of Corporate Responsibility

At MC, we view responsibility as an active pursuit that unites all parts of our firm—from the way we work and act to our community service and the investment solutions we deliver to our clients. Whether you’re a global institution, financial advisor or high-net-worth individual, we’re committed to being your most valued partner.


Effective responsible investing must start with an unwavering commitment to being a responsible firm.

ESG integration and engagement are fundamental to our active investment and research processes.

Leveraging our perspective as a responsible firm and investor, we’ve designed Portfolios with Purpose to deliver the outcomes investors expect.

Responsibility
Requires More Than
Words

From our perspective, it’s impossible to separate the notions of corporate responsibility and responsible investing. We must have an unwavering commitment to being a responsible firm in order to be truly effective responsible investors.

We Act Responsibly

We have an unwavering commitment to advancing our efforts as a responsible firm.


We Invest Responsibly

We fully integrate ESG considerations in our investment process and design purpose-driven solutions.



Environmental Stewardship

We’re working to reduce our impact on the global environment—rethinking our business operations to use fewer of Earth’s precious resources. And we’re working to establish appropriate science-driven environmental metrics and targets for MC.


Social Responsibility

We’re striving to become a more dynamic, diverse and inclusive firm that engages employees, advances corporate social behavior and stays connected to our many communities.


Corporate Governance

Our business model is built on a strong risk-aware culture, prudent risk-taking and a robust governance framework that continues to evolve in the context of our limited partnership.

$760 Million

in Portfolios with Purpose

Responsible Investing

As responsible investors, we scrutinize the environmental behavior of every company we research. It’s critical that we turn that same lens on ourselves, evaluating the impact we have on the environment—and how we can become better environmental stewards.


Responsible Investing at MC Is Investor-Driven

To implement our responsibility strategy and measure its progress, we’ve created a structure that reflects our firmwide commitment to responsibility, from the Responsibility Steering Committee to ESG analysts and investors as well as the infrastructure that supports them.




The Active
Engagement
Advantage



We’re active investors, and engagement is vital to our process. Each year, MC analysts engage with leaders of companies and noncorporate entities, including municipalities, supranational and sovereign issuers. And we engage selectively through our proxy voting activities.
Integration in Action
ESG Integration is about thoughtfully considering how material ESG issues impact a company’s investment attractiveness.



How Does Engagement Make a Difference?





ENGAGEMENT DATA

Engagement Campaign Report

In 2020, MC conducted its first, targeted ESG Engagement Campaign focused on ESG metrics in executive compensation and climate-risk goals and disclosures. MC portfolio managers and analysts engaged with over 350 of our largest holdings for action, asking companies to improve current practices or adopt new ones.






INTEGRATION AND ENGAGEMENT IN PRACTICE

Reducing Modern Slavery Risks

Modern slavery is a complex issue, and tackling it requires a constantly evolving process. At MC, we’re committed to reducing modern slavery risks associated with the operations and supply chains of companies we invest in. We’re expanding our training program to include more staff members and enhancing the monitoring of our suppliers’ compliance with MC policies on modern slavery.

Engaging with Issuers on COVID-19

Engagement has always been a vital part of our investment process, as we work to better understand issuers’ ESG behaviors and, increasingly, to advocate for change. In 2020, we logged over 12,500 meetings, including issuer-specific engagements and strategic thematic engagements.

In 2020, COVID-19 affected societies, economies and industries, so engaging on pandemic-related issues is central to dialogues with management teams—along with traditional topics such as compensation and carbon emissions. We want to ensure that issuers are being responsible corporate citizens and to better understand opportunities and threats.



Responsible Investing at MabCredit


Bridging
Climate
Science and
Investing



First-of-its-Kind Climate Change and Impact Investment Curriculum MC’s investment professionals are collaborating with climate experts at Columbia University’s Earth Institute to translate climate science into investment analysis. This initiative has produced a first-of-its-kind climate change and impact investment curriculum, “Climate Science and Portfolio Risk.” The coursework fills a major industry need for asset managers to dig deeper into the complexities of climate change and how it impacts economic and financial outcomes. The classes cover the risks of global climate change—including rising sea levels—and predictive modeling for extreme weather, wildfires and other threats from a warming planet. The ultimate goal is to better understand the impacts of climate change and apply this understanding to investment decisions. We’re thrilled to partner with the Earth Institute in applying climate science to drive better outcomes.
ESG Integration and Engagement Improve Investment Decisions
ESG considerations are financial considerations, and they must be integrated into deep fundamental research. Because ESG factors can have a material financial impact, ignoring them leaves the puzzle unfinished. ESG integration at MC is investor-driven—because investors are best positioned to conduct the deep fundamental research necessary to truly understand how ESG issues impact securities. Proprietary tools and systems advance ESG engagement, research and collaboration among our global team of analysts, responsible investing experts and portfolio managers.

In 2020, we engaged with over 350 of our largest holdings for action, asking companies to improve current practices or adopt new ones.

ESG Integration

ESG factors are fully integrated in our investment process.

ESG Engagement

As active investors, we encourage firms to improve their business activities and practices.

Portfolios with Purpose

We manage US$106 million in Portfolios with Purpose today, one of the most rapidly growing segments of our business. We also manage US$215 million in assets that use ESG integration and other enhancements.

Impact

Seeking to make a measurable social or environmental impact

Muni Impact

A fixed-income strategy that invests in historically marginalized and low-socioeconomic-status communities throughout the US. Each investment has a specific intention of reducing a societal disparity (e.g., education, health, clean water) between groups.

Sustainable

Seek issuers that meet present needs without compromising future well-being

Sustainable Thematic Platform

Includes equity, fixed-income and multi-asset portfolios that invest in companies whose products and services contribute to achieving the UN’s Sustainable Development Goals. These portfolios focus on three themes: climate, health and empowerment.

Goal-Based

Goal-based solutions have a responsibility goal as well as a traditional risk/return goal

Goal-Based Strategies

Include Global ESG Improvers focused on equities that are driving ESG improvement and positive change in the world, low-carbon versions of our flagship equity offerings, and ReUSE—a diversified large-cap core equity portfolio of investments improving on dimensions of corporate responsibility.

Collaborate, Explore, Advance

Proprietary Research Collaboration Platforms

We’ve innovated platforms that power collaboration between our analysts within and across asset classes as we research and engage with issuers.
ESG RESEARCH

Our fixed-income ESG research platform, PRISM, provides independent ESG assessments and scores that impact investment decisions. The goal, of course, is straightforward: better and faster information should empower better decisions and result in stronger portfolios.

ESG COLLABORATION

ESIGHT is our one-stop online shop where all MC investment teams can access and add proprietary information about corporate ESG practices. In 2020, we launched several enhancements, including an ESG knowledge center, COVID-19 research and country scores for fixed income..

Striving for Industry Leadership in Responsible Investing

We’re dedicated to helping the asset-management industry move responsible investing forward. Our commitment is evidenced by our active history and membership in regulatory and industry organizations and initiatives.

History of Our Commitment