Insig AI, a data science and machine learning solutions company providing ESG solutions to the asset management industry, has now delivered its ESG scoring tools to CarVal Investors (CarVal), a global alternative investment manager, to support its risk scoring methodology.
This follows the Company’s previous announcement “Insig to support CarVal Clean CLO Product Line” released on 23 July 2021.
Insig AI’s ESG solutions supports CarVal’s ESG risk assessment model measuring each asset across six themes:
Climate Change, including carbon emissions and carbon footprint
Natural Capital, including raw material sourcing and water stress
Pollution, including toxic emissions and waste
Human Capital, including health and safety and labour management
Product Liability, including product safety and consumer financial protection
Corporate Governance, including ownership and board (structure/composition)
These measurements have been utilised to create a composite ESG risk assessment that is then comparable at an individual credit and portfolio level.
Lucas Detor, a managing principal of CarVal Investors, says: “At CarVal, we believe ESG risks can have a material impact on the performance of credit investments. The creation of this ESG-compliant platform now enables us to measure ESG risk at an issuer and portfolio level to create a unique and attractive product for investors. This strategy aligns with our long-term goals of reducing the cost of capital for ESG-minded companies by creating an independent, auditable and comparable risk assessment model. We are pleased that Insig AI has helped put us in pole position to deliver a unique and optimal product for both investors and for society.”
Steve Cracknell, CEO of Insig AI, says: “We are delighted to have worked on this ground-breaking product line with CarVal Investors. Today’s news is the culmination of a long collaboration. We look forward to working with CarVal on its other fixed income offerings.”
