Canyon’s Environmental, Social and Governance (“ESG”) strategy integrates our multi-decade credit experience with analysis, engagement, and thematic investing.
Within the ESG Strategy, Canyon incorporates analysis of material ESG factors for each investment along with pursuing opportunities in sustainability-oriented themes (e.g., decarbonization, energy efficiency, health and wellbeing, sustainable infrastructure), while also excluding investments in oil and gas, gaming, tobacco, alcohol, and certain cluster munitions. Canyon’s Head of ESG works closely with the Investment Team and ESG Committee to understand and integrate this ESG analysis throughout the overall investment process. We also proactively engage with issuers in certain circumstances in an effort to encourage them to recognize and improve business practices as it relates to sustainability and/or ESG.
- Leveraging Canyon’s long-tenured Investment Team, Processes, and Relationships with companies, sponsors, and capital markets
- Utilizing Internal ESG Analysis based on primary sources (e.g., company filings, data and reports), third party data, and service providers
- Pursuing investments that capture sustainability-oriented themes, such as Decarbonization, Clean Energy, Health and Wellbeing, and Circular Economy
- Exclusionary Screens on Companies in Oil and Gas, Casinos and Gaming, Tobacco, Alcohol, Cluster Munitions, and Anti-Personnel Mines
In certain circumstances, our ESG efforts may incorporate engagement with the companies in which we invest. The level of ESG engagement is dependent on a variety of factors, including our position in the capital stack. One of the primary methods in which we engage is to ask thoughtful questions and provide constructive and critical feedback to management, sponsors, and capital markets around important ESG issues. We believe a tangential, but important, outcome of these questions is to educate and foster an appreciation for ESG considerations within the organizations in which we are invested, many of which we continue to work with on an ongoing basis in repeat transactions. This engagement may include open discussions with issuers about their governance structure and practices, environmental impact, and social policies. Where appropriate, and depending on the investment strategy and mandate, we may seek to encourage change, and may take into account expected ESG-related events and catalysts when selecting certain investments.
There can be no assurance that Canyon will replicate past results or meet its objectives in the future. Any investment with Canyon involves significant risk, including the risk of loss of all or a portion of an investment.
Launched ESG strategy