We believe that integrating environmental, social, and governance (ESG) factors into our investment process not only aligns with our core values but also enhances long-term value for our clients. By systematically incorporating and managing ESG considerations, we aim to deliver stronger risk-adjusted returns while contributing to the stability and sustainability of global financial systems. Our responsible investment approach centres around two key pillars: ESG integration and effective stewardship.
Our approach to responsible investing is guided by the UN Principles for Responsible Investment (UN PRI). Gryphon initially became a signatory to the UN PRI in 2020 and continues to uphold these principals as a part of Barings, which has been a UN PRI signatory since 2014.
At Gryphon, the commitment to ESG extends beyond our investment activities. We integrate ESG considerations into our broader business practices through corporate social responsibility (CSR) initiatives. Our CSR efforts focus on making a positive impact through community engagement, supporting and uplifting our staff, and managing our environmental footprint.
At Gryphon, we have adopted an integration approach to responsible investing, systematically incorporating ESG considerations into our investment process. Given the complexity of securitised products, we are continually refining our ESG integration framework to assess material ESG factors across three key components of a transaction: the originator, the underlying assets, and the deal structure. For green and social bonds, we also evaluate the credentials of each issuance to ensure they effectively contribute to their intended environmental or social objectives.
Our ESG analysis is grounded in proprietary research, including a comprehensive originator ESG assessment. This approach is tailored to the structured finance market, where third-party ESG data is still limited, and the risks and opportunities differ from other asset classes.
For more information on our integration framework, please refer to section 4.1 of our ESG Integration and Stewardship Policy, available below.
As stewards of our clients’ capital, we are committed to exercising our influence to protect and enhance long-term value for our clients.
At Gryphon, we view issuer engagement as a vital tool for driving positive change and managing ESG risks. Our long-standing relationships with issuers enable us to actively engage at every stage of a bond’s lifecycle. Through our engagements, we aim to address ESG risks, advocate for improved ESG practices, and encourage greater transparency in reporting.
In addition to our direct engagement with issuers, we collaborate with other industry stakeholders with the aim of promoting best practices and advancing ESG integration in structured finance. Our involvement in collaborative initiatives, including the Australian Securitsation Forum's Sustainability Subcommittee, allows us to contribute to systemic changes that benefit both our clients and the broader community.
For more information on our responsible investment approach, please refer to our ESG Integration and Stewardship Policy.
