The asset managers intergrate ESG factors in their investment processes through a dedicated ESG team which incorporates ESG analysts who provide guidance and valuable input to portfolio managers for the selection criteria. This is incorporated through the weighting of individual counterparts relative to the benchmark.
Asset managers engage with the client on ESG considerations during performance reporting which allows for monitoring of the investment portfolio by the client. Furthermore our asset consultant performs a benchmarking exercise on the individual asset managers and their portfolios which allows Sasria to monitor their approach and engage if necessary. In terms of Sasria investment policy, only asset managers who are signatories of the PRI may be appointed to manage funds on our behalf. If these managers deviate from their mandate guidelines appropriate action will be taken immediately.
Furthermore through principle two, ESG factors are incorporated into the proxy voting decisions, these are monitored on a regular basis and reported to the investment committee.