Specific industries are automatically rejected, such as tobacco, gambling, armaments, alcohol, thermal coal and nuclear energy. An active part of the process applies scores to companies derived from the MSCI and internal analysis: on a scale of one-to-10, the fund will not buy the bonds of a company with a rating of less than three. The ratings are compiled from an analysis of corporate governance issues, such as transparency, treatment of stakeholders and corruption; impact on local communities; and activities that have a negative (and positive) effect on the environment. M&G has a central ESG team whose analysis is incorporated in the bond research and portfolio construction process, the fund's manager James Tomlins told FSA previously. Last September, Federated Hermes launched a SDG Engagement High Yield Credit Fund in partnership with UBS Wealth Management which is a variant on the ESG theme.