In April/May 2020, TPI consulted on how it might develop a TPI framework for assessing corporate fixed income issuers. TPI received 31 responses to the consultation, from 17 asset managers, 7 asset owners and 7 other finance sector stakeholders.
The main findings were:
- There is strong support for the proposal that TPI apply its management quality and carbon performance methodology to fixed income issuers, and that these assessments should focus on the corporate entity rather than the bond.
- Disclosure, and the lack of disclosure, is a major issue, in particular in high yield. Respondents agreed that this is not a barrier to proceeding with assessing companies against the TPI framework.
- There is strong interest in developing a robust performance assessment framework for banks.
- Many respondents suggested that, in time, TPI may consider developing an assessment framework for green bonds and for different duration bonds.