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Environment, Social & Governance
ESG is recognised as a generational investment theme of increasing importance to many of BlueCove's clients and employees

ESG Integration

BlueCove is able to integrate ESG data and research naturally into its investment process and is currently doing this in its corporate credit products.

Research Insights

Our research insights include findings that it is possible to achieve materially lower carbon emissions in long-only corporate credit portfolios without significantly reducing portfolio alpha. In addition, for long-short strategies that target a net negative emissions portfolio, we believe the emissions profile can be improved with only a modest impact on expected returns.

Research

Research

Aside from specific sustainable solutions that may be developed with clients, BlueCove's scientific investment process, which is underpinned by proprietary research, already supports the inclusion of certain ESG metrics into its corporate credit investment process.

Data

Data

ESG data is fast-changing, high-breadth and varied. BlueCove's ability to process large quantities of data using custom-engineered tools facilities the inclusion of ESG considerations across risk, return and liquidity trade-offs.

ESG Engagement

ESG Engagement

BlueCove understands the importance of improving comparable ESG data, as well as encouraging issuers to improve their long-term governance and sustainability risk management.

Being a signatory to ESG initiatives has helped the firm to learn, report, and participate in engagement both directly and collectively. For example, BlueCove participates in the CDP's Non-Disclosure Campaign, a direct engagement initiative.

Governance

BlueCove maintains a strong governance and risk management structure, including committees and measures to ensure accountability and effective oversight and controls.

We have established a cross-firm ESG committee that operates in alignment with the firm's investment process and broader ESG engagement within the business.

Governance

Corporate and Individual ESG at BlueCove

To increase our collective awareness, as ESG is a dynamic field, it is important for BlueCove to engage employees, capture their opinions, and involve them in developing the firm's corporate initiatives. BlueCove conducts firmwide ESG-related surveys to collect relevant data and develop or improve initiatives annually.

BlueCove has developed initiatives and policies to embed its ESG strategy as appropriate across its business. These initiatives and policies are supported by BlueCove's employees. At BlueCove, we also do not tolerate any form of forced labour, either within our business or within our supply chain.

89%
of employees support BlueCove's ESG philosophy
89%
of employees support BlueCove's corporate ESG initiatives
87%
of the firm state that ESG factors influence their everyday choices
Source: BlueCove's January 2024 ESG & TCFD survey that had a 92% response rate
Corporate sustainability metrics

Corporate Sustainability Metrics

BlueCove is doing its part to track, analyse and reduce our carbon emissions and waste consumption.

The firm understands the importance of providing consistent and reliable information regarding climate-related risk. We follow the TCFD framework regarding risks and opportunities concerning investment management and the firm's corporate operations.

139.4 tCO2e
Business travel
77%
Energy efficient lighting
74%
Public transport or low-emission transportation
64%
Recycling rate
1.3 tCO2e
Estimated employees home working
100%
Renewable energy
Source: 2023 data from The Crown Estate and BlueCove's travel management company

Signatories

BlueCove is a signatory to a number of external ESG initiatives which helps us to continue to improve and embed ESG alongside our values.

Task Force on Climate-Related Financial Disclosures
Carbon Disclosure Project
Principles for Responsible Investment
UN Global Compact
International Financial Reporting Standards