This report shows public data only. Is this your organisation? If so, login here to view your full report.

Colonial First State Global Asset Management (including First State Investments)

PRI reporting framework 2016

Export Public Responses
Pdf-img

You are in Direct - Fixed Income » Outputs and outcomes

Outputs and outcomes

FI 21. Financial/ESG performance

21.1. 債券におけるESG分析の組み入れが投資結果および/またはESG実績に与えている影響を組織が測定するのかどうかを記載してください。

適用する選択肢を記入してください
SSA
社債(金融)
社債(非金融)
証券化商品
ESGの組み入れがファンドの評判に影響しているかどうかを測定している
ESGの組み入れが財務リターンに影響しているかどうかを測定している
ESGの組み入れがリスクに影響しているかどうかを測定している
ESGの組み入れがファンドのESG実績に影響しているかどうかを測定している
上記のいずれでもない

21.2. その方法を説明してください [任意]

In our 2015 Responsible Investment and Stewardship report we provided analysis on how our ESG assessment has influenced default risk vs the credit rating agencies. While not quantifying the influence the analysis clearly showed that ESG factors were influencing our internal credit ratings with positive flow on impacts to the fund's performance. 

The case study can be found at the following link:

http://ri.firststateinvestments.com/esg-corporate-bonds.htm

This analysis will become a regular part of our RI Report going forward. 

While our ESG assessment is only one part of a multi-factor risk assessment, we believe that the superior default and loss experience of the Global Credit Income Fund is at least in part attributable to the integration of ESG considerations into our research process. When taken together, the influence of ESG factors on our internal credit ratings and the default experience of the fund demonstrate the benefits of robust ESG integration.

21.3. 補足情報 [任意]


FI 22. Examples - ESG incorporation or engagement

22.1. ESG分析の組み入れおよび/または発行体のエンゲージメントが、報告年度中に組織の債券投資結果に与えている影響例を示してください。

ESG問題および説明

BHP  and Vale - Internal rating downgraded due to weakened ESG risk score from Samarco Dam collapse in Brazil that caused loss of lives and significant damage.

投資決定やパフォーマンスへの影響

Reduced exposure in portfolio

ESG問題および説明

Volkswagen - Internal rating, which was already lower than the agencies rating, was downgraded further following admission they defrauded the US EPA on emissions testing of diesel engine. Total costs from reputation damage, brand image, litigation and regulatory penalties are difficult to quantify but likely to be in the billions with resolution years away and uncertainty overhanging company for some time.

投資決定やパフォーマンスへの影響

Reduced exposure in portfolio

ESG問題および説明

In 2015 12 signed the Statement of Investor Expectations for the Green Bond Market. To encourage improvement in environmental due dilligence and impact reporting.

We also provided feedback to Moody’s consultation on Green Bond assessments. Our feedback was gathered from across our fixed income teams and included:

  • We believe that the way the scoring is set up, there are only hurdles, not gates. We believe there are certain ‘minimum standards’ that could be imposed to ensure a Green Bond is sufficiently ‘Green.’
  • Although reporting and disclosure is critical to monitor the progress of a project, the mere fact an issuer has a robust reporting regime does not indicate the likelihood that bond proceeds will be invested to support environmentally beneficial projects. We think a 35% weight on these aspects may be too high a contribution to scoring.
  • We suggested that Moody’s incorporate the Climate Bond Initiative (CBI) criteria as well as the Green Bond Principals (GBP) in this assessment. 

投資決定やパフォーマンスへの影響

None

ESG問題および説明

Banks/Issuers. Counterparties/Banks. Encourage better disclosure on indirect environmental and social risks on banks’ balance sheet. This is an ongoing engagement.

投資決定やパフォーマンスへの影響

This is an ongoing engagement. Annual review and feedback to counterparties. Follow up meetings organised for new year with specific counterparties.

Review scores influence how much business we will do with each counterparty. 

ESG問題および説明

The Kroger Co

We appreciate leading US grocery store chain Kroger Company's focus on long-term value creation for all of its stakeholders, including its customers, employees, and the communities in which the company operates. We believe that the company's locally-minded charitable causes, generally favorable relations with its extensive organized labor force, emphasis on fair dealings with suppliers, and proactive initiatives to improve its carbon footprint all function in a manner that fosters a positive image and sense of goodwill for Kroger from its customers, which we believe is a very favorable long-term benefit for the company. We also view Kroger as being a conservatively managed company that focuses on creating real business value, rather than making decisions solely to drive short-term share price gains, supported by the company's general practice of having managers who rise organically through the company. As a result of these factors, we assess the company as having 'Low' ESG Risk, and rate Kroger with an Internal Credit Rating of 'a-', two notches above the company's 'Baa2' rating at Moody's and 'BBB' rating at S&P.

投資決定やパフォーマンスへの影響

Higher likelihood of investment

22.2. 補足情報。 [任意]


Top