LEADERSHIP IN ESG INVESTING

Stone Harbor has an extensive history of integrating environmental, social and governance (ESG) factors throughout our investment processes. We believe that ESG analysis is a vital component of fundamental credit research and will continue to increase in importance into the future.

Our Approach

We believe that ESG factors should be regarded as integral components of thorough credit analysis and sustainability. Throughout Stone Harbor’s history, we have continuously researched new sources of information that add value in the analysis of all risks, including ESG. We are confident that we are able to monitor, manage and minimize specific ESG risks from our portfolios in our commitment to responsible investment for our clients and seek to achieve our objectives of producing excellent risk-adjusted returns for them.

Our Process

Throughout Stone Harbor’s history, we have striven to be at the forefront of ESG risk assessment. We have been proactive in our efforts to monitor, manage and minimize ESG risks. In building our processes, we have:

  • Developed a proprietary framework for inclusion of ESG factors into our fundamental investment process in Emerging Markets Debt (EMD).
  • Conducted extensive quantitative research into the impact of ESG factors on EMD returns.
  • Engaged with corporate and sovereign issuers on ESG risks and their impact on creditworthiness and sustainability

Our History

Over the past decade, we have supported key global initiatives to promote ESG investing:

2012

Stone Harbor became a signatory to the UN Principles for Responsible Investment (PRI), and as a signatory we report annually on our responsible investment activity through the PRI’s Reporting Framework. Our PRI Transparency Report is publicly disclosed on the PRI website.

2016

Stone Harbor signed the PRI Statement on ESG in Credit Ratings, which we hope will enhance systematic and transparent consideration of ESG factors in the assessment of creditworthiness by credit ratings agencies.

2017

Stone Harbor became an investor signatory to the Carbon Disclosure Project (CDP). The CDP, leveraging the combined clout of its signatories and members as investors, runs a global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impact.