ESG Investing
ESG Integration
Environmental, social, and governance considerations are incorporated into the investment process where relevant to the strategy and underlying portfolio objectives.
The level of integration varies across strategies. Certain mandates apply defined ESG screening and evaluation frameworks, while others follow more constrained investment universes designed to achieve specific outcomes, where ESG application may be more limited.
Customized mandates may also incorporate additional ESG parameters based on investor-specific requirements.
ESG factors are assessed as part of the broader investment evaluation process, with a focus on identifying risks that may impact long-term performance.
Integration is applied selectively, depending on the nature of the asset class, strategy structure, and available data, ensuring that ESG considerations remain aligned with overall investment objectives.
Industry-Based Exclusions
Some investment strategies may avoid specific industries based on their risk profile or investment guidelines.
These may include:
- Alcohol production
- Gambling-related businesses
- Tobacco manufacturing
- Defense and munitions
- Coal and similar industries
The use of these exclusions depends on the specific strategy and investment objectives.
Conduct-Based Exclusions
Companies may also be excluded if there are serious concerns related to how the business is managed or operated.
This includes situations such as:
- Weak governance or poor management practices
- Violations of human rights
- Significant environmental risks
- Other issues that may affect long-term stability
These factors are reviewed as part of the ongoing investment process to support better risk management.
Our ESG Approach
Altavero Capital considers environmental, social, and governance (ESG) factors as part of the broader investment process, with the objective of improving risk awareness and supporting long-term portfolio stability.
ESG integration is applied in a practical way, aligned with each strategy’s objectives and constraints.
Responsibility
- Capital is managed with a clear responsibility to align investment decisions with defined objectives, risk parameters, and portfolio guidelines.
Investment Selection
- A disciplined and long-term approach is applied when selecting investments, with attention to both financial performance and relevant ESG considerations.
Transparency
Portfolio holdings and investment activity are maintained with a high level of transparency, allowing clear visibility into positions and transactions.
Where applicable, ESG factors are incorporated into research and portfolio construction, including:
- Limiting exposure to certain industries based on strategy guidelines
- Evaluating companies based on governance, environmental, and operational risks
- Adjusting investment decisions where risk indicators are elevated
Altavero Capital ESG Policy
Altavero Capital’s ESG Policy is designed to ensure that environmental, social, and governance factors are considered as part of the investment process across relevant strategies.
The policy focuses on identifying and managing ESG-related risks and opportunities, supporting more informed investment decisions and long-term portfolio stability.
Integrating ESG considerations is aligned with the firm’s responsibility to manage capital with discipline, transparency, and a clear understanding of risk.
Security-Level Research
As part of its credit and fixed income strategies, Altavero Capital evaluates each issuer using a structured research framework that incorporates both financial and non-financial factors, including ESG-related considerations. This approach helps identify potential risks early and supports more informed investment decisions.
Management quality
Governance
Environmental Risks
Social Risks
Reputational Risks
Disclosure
Off Balance Sheet Risks
Diversity
Altavero Capital places strong emphasis on risk management as part of the investment process. Environmental, social, and governance (ESG) factors are reviewed alongside financial analysis to better understand potential risks that may affect long-term performance.
Weak governance, limited transparency, or poor business practices can lead to material risks, including regulatory penalties, reputational damage, and reduced access to capital. These factors can directly impact a company’s financial stability and overall valuation.
Governance remains a key area of assessment, particularly in credit and fixed income investments, where management is responsible for meeting financial obligations.
Strong governance structures support reliability, while weaknesses may increase the likelihood of default, operational issues, or misalignment with investor expectations.
Investment decisions are supported by a combination of internal research and external data sources.
This includes:
- Review of company disclosures and reporting standards
- Evaluation of compliance with relevant ESG guidelines
- Direct engagement with management where deeper analysis is required
- Ongoing monitoring of risk factors throughout the investment lifecycle
Where material risks are identified, specific companies or securities may be excluded from investment.
Internal analysis is supplemented by third-party data, including ESG scoring and research tools, to provide additional perspective and support more informed decision-making.
Direct Real Estate Investments
Altavero Capital incorporates environmental, social, and governance (ESG) considerations into its real estate investment process, with a focus on long-term asset quality, operational efficiency, and responsible development.
Sustainability Standards
Assets are evaluated against recognized sustainability benchmarks to support consistent performance and responsible asset management.
Energy Efficiency
Investments prioritize improvements in energy efficiency, including the use of modern systems, renewable energy solutions, and reduced waste generation where feasible.
Economic Impact
Investment activity considers the broader economic contribution of assets, including support for growth across metropolitan, regional, and local communities.
Due Diligence
All investments undergo detailed due diligence, including the assessment of counterparties, to ensure alignment with internal standards and long-term investment objectives.