Environmental, Social, and Governance (ESG)

LM Capital Group integrates ESG considerations into its investment process as part of its comprehensive credit analysis and risk management framework. ESG factors are evaluated alongside traditional financial metrics to identify potential risks and opportunities that may affect long-term credit quality and investment performance.

Our approach to responsible investment is consistent with our overall investment approach. As globalization evolves, the world’s capital markets are becoming increasingly interrelated and interdependent, with political and social events often playing a significant role in economies around the world. We believe that ignoring ESG factors is an unacceptable way to conduct fundamental investment analysis.

Integration Approach

• Screen: Identify material ESG factors by sector and issuer
• Assess: Evaluate ESG risks alongside financial analysis
• Integrate: Incorporate findings into credit ratings and selection
• Monitor: Ongoing surveillance of ESG developments

Our ESG Standards in Practice

• Avoiding issuers in countries that lack sufficient Rule of Law
• Avoiding issuers with material involvement in tobacco and firearms production
• Avoiding issuers that are particularly vulnerable to low probability, high cost event risk
• Seeking issuers that we expect to benefit from the transition away from fossil fuels

ESG integration is applied across all strategies and all assets under management. ESG considerations supplement, but do not replace, traditional financial analysis.