Environmental, Social and Governance (ESG)
Lennox recognises that the ESG performance of companies in which it invests are relevant to the value, performance (risk and/or return) and reputation of the investments that are made as part of its portfolio. Lennox is committed to making responsible investment decisions on behalf of its clients.
Lennox believes ESG is integral to the investment decision process in order to manage investments for the long term. ESG factors are explicitly considered and assessed in Lennox’s investment process as part of the qualitative assessment of the company.
When assessing the quality score of a company to determine whether it is investment grade or sub-investment grade, Lennox examines four factors: Management, Sustainability, Earnings Quality and Industry. For a company to be assessed as “investment grade”, it must pass Management and Sustainability and at least one additional factor. ESG considerations are an integral part of the Sustainability assessment.