ESG
Since the firm was set up in 2003 we have implemented ESG factors into the investment process for all our products
Because the investment community has adopted ESG terminology, we also use these terms for ease of communication. Whatever words we use, however, the fundamental issues have always been critical to our activity.
Environmental
  • We care about how companies affect the environment.
  • We look at companies' involvement in the production of hydrocarbons, coal, coal-based generation and try to determine the issuers' impact on the environment.
  • We also evaluate potential financial risks arising from companies' environmental impact and chosen strategy to address ESG issues.
E
Social
  • Our social standards for companies center around their attitude to workers.
  • We monitor workplace safety, human development, customer safety and control over supply chain labour.
  • We also scrutinize exposure to businesses such as alcohol, tobacco, weapons, gambling and furs and rare animal products.
S
Corporate Governance
  • We pay close attention to governance practices
  • We focus on a company's history of honouring rights of minority investors, as well as the behaviour of controlling shareholders at other companies.
  • Quality of management, transparency of communications with investors, sound business procedures and practices in place are also important parts of our governance analysis.
G
Our Commitment
In 2021 Halcyon become signatory to the UN Principles for Responsible Investment
Proprietary ESG Methodology
The only way to paint an objective picture is to put our own resources into it
Quite often third-party ESG scores are sponsored by the companies themselves, which creates a conflict of interest, or are construed in a way that is not particularly aligned with our goals.

That's why we decided to create our own ESG scoring and monitoring system. We collect information through questionnaires, other company interactions and public sources.
For us ESG rating is not an end goal, but rather a very useful tool that allows us to better understand the companies in our investable universe and risks associated with investing
For us ESG rating is not an end goal, but rather a very useful tool that allows us to better understand the companies in our investable universe and risks associated with investing
FAQs
We hope that the Q&A format will help you better understand our ESG framework
To what extent do ESG/Impact factors influence investment decisions?
Halcyon:
We try to avoid investing in companies with poor corporate governance scores. However the most important characteristic for us is not the level, but the dynamics of ESG score, how fast the company is progressing on these issues.
How do you monitor the carbon footprint of your investment portfolio?
Halcyon:
We assess our portfolio's carbon footprint on an annual basis using external sources (yourSRI) as well as our own methodology.
How do you encourage companies to improve their ESG behaviour?
Halcyon:
Engagement with corporate issuers is a cornerstone of our investment approach. We participate in about 500 meetings every year. In our interacting with the companies we are not only obtaining information on their current ESG stand, but also trying to explain to the management what improvements the market would like to see, and why this is beneficial for the company to score high on ESG scale.