As a signatory to the UN Principles for Responsible Investment, we are committed to integrating environmental, social and governance (ESG) factors in the decisions we make. This is consistent with both our investment objectives and responsibilities to our clients.
Our values and those of our investors drive us to adopt an ESG approach that is in line with our own priorities, while working with our industry to build consensus around what we define as ESG best practice for macro hedge funds.
We believe that consideration of material ESG risk factors in our investment decision making process is an increasingly important part of our fiduciary duty to our clients.
Our approach has three main pillars:
1. Proprietary ESG
Sovereign Risk Model
In order to embed ESG factors in our general investment decision-making, particularly in the foreign exchange and interest rates markets, we have developed a proprietary framework for assessing and scoring every country in which we are active in against ESG-related factors. We believe that these factors will have an increasing impact on cross-border capital flows. Our internal sovereign ratings provide us with important context for our medium-term macro view for each country. Since short-term capital flows are heavily impacted by changes in medium- and long-term macro views, we believe that tracking and monitoring these factors will also have important implications for our short term trading strategies. We encourage a healthy debate on ESG risk factors among our team members, ensuring that these considerations are integrated as part of a continuous and holistic approach to understanding the connection between ESG factors and our investment activities.
Diversity & Inclusion
Modular seeks the best talent for its team, regardless of nationality, ethnicity, gender, religion, sexual orientation, age or disability. We believe in the value of diverse perspectives and strive to create an environment in which all our people can thrive.
We abide by Singapore’s Tripartite Guidelines on Fair Employment Practices and have signed the employer’s pledge for Fair Employment Practices.
Corporate Social Responsibility
Modular is developing a strategy for its long term support of social causes. We also encourage all our employees to be aware of local and regional social challenges and to devote themselves to projects that help address those challenges through the commitment of their time as well as through financial donations.