Lyxor Asset Management is to integrate ESG filters into its sovereign bond management business.

The strategy involves overweighting sovereign bonds with good ESG scores using MSCI ESG data and a country’s overall ESG score to assess its long-term economic sustainability. The company says that calculating the total ESG score of the sovereign bonds available to invest involves giving a weighting of 50% to governance, which leaves the societal and environmental factors with 25% each.