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BT Pension Scheme

PRI reporting framework 2016

You are in Indirect – Manager Selection, Appointment and Monitoring » Listed equity (LE) and Fixed income (FI)

Listed equity (LE) and Fixed income (FI)

Overview

SAM 03. Breakdown by passive, quantitative, fundamental and other active strategies (Private)


SAM 04. ESG incorporation strategies

04.1. Indicate which of the following ESG incorporation strategies you require your external manager(s) to implement on your behalf:

Active investment strategies

Active investment strategies

LE

Corporate (financial)?
Corporate (non-financial)?

Screening

Thematic
Integration
None of the above

Passive investment strategies

Passive investment strategies

LE

Screening

Thematic
Integration
None of the above

04.2. Additional information. [Optional]


Selection

SAM 05. Selection processes (LE and FI)

05.1. Indicate whether your organisation and/or your investment consultant typically do any of the following in the manager selection process for listed equity and/or fixed income.

General

LE

Corporate (financial)?
Corporate (non-financial)?

Review the manager’s responsible investment policies

Discuss managers' governance and management of responsible investment activities
Meet staff with responsible investment responsibilities to assess their skills and competence
Discuss minimum responsible investment expectations that managers must meet
Discuss the role managers have played in collaborative initiatives 
Ask whether the organisation is a signatory to the PRI and/or other relevant organisations
Review the manager's responsible investment reporting to clients and/or the public, (excluding PRI)
Review the manager's PRI Transparency or Assessment reports
Discuss the type of ESG reporting you expect
Assign specific weighting to ESG factors in your manager evaluation
Other general aspects in your selection process, specify
None of the above

ESG incorporation

LE

Corporate (financial)?
Corporate (non-financial)?

Evaluate the quality and coverage of ESG research used by managers

Assess how the manager incentivises brokers to provide ESG research
Assess managers' ESG incorporation strategies and ability to identify and manage ESG issues
Discuss with managers how ESG issues have impacted specific investment decisions and, where relevant, stock or portfolio performance
Evaluate index providers' ESG incorporation when designing the index
Other ESG incorporation issues in your selection process, specify
None of the above

Engagements

LE

Corporate (financial)?
Corporate (non-financial)?
Discuss with the manager the historic interactions they have had with the investee entities 
Discuss the comprehensiveness of managers' engagement processes
Discuss the role managers have played in influencing investee entities' ESG practices and performance
Discuss the escalation strategies the manager deploys in case of insufficient ESG performance
Discuss how information gained through engagement is incorporated into investment decision-making
Other engagement issues in your selection process,specify
None of the above

(Proxy) voting

LE

Discuss the managers’ voting processes

Discuss how information gained through research for (proxy) voting is used in investment-decision making

Discuss whether the manager is able to deploy the asset owner's proprietary voting policy or aligning its voting policy with the asset owner's investment beliefs and strategy

Other (proxy) voting issues in your selection process, specify

None of the above

If you select any 'Other' option(s), specify

05.2. Please describe the level of experience board members/trustees/chief-level staff have with incorporating ESG factors into investment decision-making processes.

The Trustees delegate evaluation of ESG factors into investment decision-making processes to BTPSM who oversee the Scheme's investment managers. The evaluation of managers' RI policies and processes is led by BTPSM's Head of RI who has 10 years of experience across sustainable development and corporate governance in both private and public sectors. The Head of RI works across and collaboratively with an experience investment team including the Head of Manager Selection and Head of Portfolio Analytics.

05.3. Provide additional information relevant to your organisation's selection approach for listed equity and/or fixed income. [Optional]


Monitoring

SAM 07. Monitoring processes (LE and FI)

07.1. Indicate whether your organisation and/or your investment consultant in the dialogue and monitoring of your external manager typically do any of the following.

General

LE

Corporate (financial)?
Corporate (non-financial)?
Include responsible investment as a standard agenda item at performance review meetings
Highlight examples of good responsible investment practice by other managers
Discuss if the manager has acted in accordance with your overall investment beliefs on responsible investment and ESG issues
Discuss if the manager has acted in accordance with your organisation's overall strategy on responsible investment and ESG issues
Discuss if the manager has acted in accordance with your organisation's overall policy on responsible investment and ESG issues
Review the manager's responsible investment reporting (excluding PRI)
Review the manager's PRI Transparency or Assessment reports
Review ESG characteristics of the portfolio
Review the impact of ESG issues on financial performance
Encourage your managers to consider joining responsible investment initiatives/organisations or participate in collaborative projects  with other investors
Include responsible investment criteria as a formal component of overall manager performance evaluation
Other general aspects of your monitoring, specify
None of the above

ESG incorporation

LE

Corporate (financial)?
Corporate (non-financial)?
Request information on ESG incorporation in specific investment decisions 
Other ways you monitor ESG incorporation, specify
None of the above

Engagements

LE

Corporate (financial)?
Corporate (non-financial)?
Review the ESG information relevant to the engagements
Discuss the number of engagements and their comprehensiveness
Discuss the type of role played (i.e. leading or supporting)
Discuss the outcomes and quantifiable impact of the engagements 
Review the progress of ongoing engagements and/or outcomes of completed engagements
Other ways you monitor engagement activities, specify
None of the above

(Proxy) voting

LE

Review the number or percentage of votes cast
Request an explanation of reasons for votes cast
Discuss whether companies were informed of the reasons for votes against management recommendations or abstentions/withheld votes
Review the number of resolutions on ESG issues filed or co-filed 
Discuss the changes in company practice (outcomes) that have been achieved from voting activities
Other ways you monitor (proxy) voting activities, specify
None of the above

If you select any 'Other' option(s), specify

07.2. Provide additional information relevant to your organisation's dialogue and monitoring of external managers.


SAM 08. Percentage of (proxy) votes cast

08.1. For the listed equities where you have given your external managers a (proxy) voting mandate, indicate the approximate percentage (+/- 5%) of votes that were cast during the reporting year.

Votes cast (to the nearest 5%)

100 %

Specify the basis on which this percentage is calculated

08.2. Additional information. [Optional]


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