MIM has always integrated environmental, social, and governance (ESG) factors in our investment decision-making processes, as outlined in our ESG Investment Policy.
We believe material ESG factors have an impact on investment performance and therefore are a critical part of risk management, which is ingrained in MIM’s culture and integrated throughout our organization. When assessing the relevant risks associated with any investment opportunity, we conduct bottom-up fundamental research and focus on multiple factors. These considerations are a vital part of our due diligence, as we seek to identify issues that may impact the reputation of a borrower or company, as well its financial condition, credit rating, and transaction pricing.
In 2019, MIM revised and expanded its ESG Investment Policy and issued supplemental policies for multiple asset classes — including commercial and equity real estate, and agricultural lending — to create more transparency around our processes.
Enhanced governance and oversight
MIM also launched an ESG Integration Council (the Council) with representatives from all MIM asset sectors1 and support functions to better coordinate and integrate policies and practices internally, as well as to facilitate sharing of best practices, knowledge, and expertise.
The Council meets bimonthly and is hosted by MIM’s Sustainable Investment Strategies (SIS) team, which is responsible for the development, implementation, and oversight of MIM’s sustainable investment strategy. The SIS team ensures that MIM’s asset originators, portfolio managers, and credit analysts implement MIM’s responsible investing practices and adhere to the ESG Investment Policy. This cross-functional Council will facilitate our ability to meet the commitments MIM has made as a signatory to the Principles for Responsible Investment (PRI).