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Impax Asset Management

PRI reporting framework 2017

Export Public Responses

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

Implementation processes

LEI 03. Percentage of each incorporation strategy

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03.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
100 %
アクティブ運用している上場株式の合計 100%

03.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

Impax Asset Management is a leading investment manager dedicated to investing in the opportunities created by the scarcity of natural resources and the growing demand for cleaner, more efficient products and services. Our listed equity funds seek out mis-priced companies that are set to benefit from the long-term trends of climate change, inadequate infrastructure, environmental constraints, changing demographics, urbanisation and the resultant increases in resource scarcity. Investment is focused on a small number of deeply researched global equity strategies across alternative energy, energy efficiency, water, waste, food and agriculture and related markets.

Our entire investable universe is screened quarterly on a normative-basis by a third party ESG-research provider , in order to ensure that none of our companies breach any of the ten UN Global Compact Principles. We will not invest in companies that breach fundamental normative issues such as Human Rights, Labour Rights or involvement with corrupt practices. However, we do not perform any other screens, such as negative screens, across our listed equity investments.

A thorough ESG-analysis is fully integrated in our investment analysis and process, as it provides us with a more complete picture of the companies we invest in and results in a better assessment and understanding of the broader risks and opportunities. By analysing companies beyond the financials, we aim to identify company character and quality.

03.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]

Our investment area focusing on opportunities around resource scarcity and environmental markets, can be viewed as a thematic approach and is the area our entire investment team is fully focused on.

We view our normative UN Global Compact screening as a "must pass" first element for all our companies in our investable universe, whereas our ESG-integration allows us to drill much deeper into the characteristics of our companies. All these elements are necessary in our investment process.


LEI 04. Type of ESG information used in investment decision

04.1. 組織でESG組み入れ戦略に使用しているESG情報およびこの情報の提供者を記載してください。

ESG情報の種類

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

04.2. 使用されているESG情報を簡単に説明してください。ESG組み入れ戦略全般での情報源の違いを明らかにしてください。

We use third party ESG-analysis for the normative UN Global Compact Screen and use inputs, data and thematic information from third party ESG-providers for our ESG-integration work. However, we do not use the ESG-ratings of any third parties directly, but set our own deeply researched ESG-ratings for all of our investee companies. These are based on data and information from third party research and data providers, but mainly on our own proprietary analysis.

04.3. ブローカーがESG調査を提供することについてインセンティブを適用しているかを記載してください。

04.4. ブローカーに対しどのように奨励しているかを記載してください。

We incentivise brokers through quarterly payments for original and value-adding analysis and research, including ESG-analysis.

04.5. 補足情報。[任意]


LEI 05. Information from engagement and/or voting used in investment decision-making

05.1. ESGへのエンゲージメントや(委任状による)議決権行使から得られる情報を投資の意思決定に利用できるプロセスが組織にあるかどうかを記載してください。

05.2. 補足情報。[任意]


(A) Implementation: Screening

LEI 06. Types of screening applied

06.1. 組織内でアクティブ運用している上場株式に適用するスクリーニングの種類を記載し、説明してください。

スクリーニングの種類

スクリーニング実行者

説明

Our listed equity funds seek out mis-priced companies that are set to benefit from the long-term trends of climate change, inadequate infrastructure, environmental constraints, changing demographics, urbanisation and the resultant increases in resource scarcity. Investment is focused on a small number of deeply researched global equity strategies across alternative energy, energy efficiency, water, waste and sustainable food. We positively screen for companies active in these areas, with a min. 20% of revenues.

Our investable universe is screened quarterly on a normative-basis by a third party ESG-research provider, in order to ensure that none of our companies breach any of the ten UN Global Compact Principles. We will not invest in companies that breach fundamental normative issues such as Human Rights, Labour Rights or involvement with corrupt practices. However, we do not perform negative screens, across all our listed equity investments.

We also screen all the companies in our investable universe for material ESG-aspects. An ESG-analysis is an integral part of our investment analysis and process, it provides us with a more complete picture of the companies we invest in. We analyse our companies' governance structures from a country-perspective and their environmental/social risks from a materiality-based sector perspective.

スクリーニング実行者

          Companies involved in the production / manufacturing of cluster munitions or anti-personnel mines would be screened out, as this constitutes as a human rights breach.
        

説明

Our investable universe is screened on a normative-basis by a third party ESG-research provider on a quarterly basis, in order to ensure that none of our investee companies are in breach of any of the ten UN Global Compact Principles. We will not invest in companies that breach fundamental issues such as Human Rights, Labour Rights or are involved with corrupt practices.

Companies involved in the production / manufacturing of cluster munitions or anti-personnel mines would also be screened out, as this constitutes as a human rights breach.

 

06.2. スクリーニング基準の設定方法、基準の見直し頻度、基準の変更を顧客や受益者に通知する方法について説明してください。

A third party ESG-research provider screens our investable universe every quarter to identify any potential UN Global Compact issues. Companies which are found to have minor issues are flagged and we monitor these particularly thoroughly and engage with these companies where relevant. Companies that are not compliant with the UN Global Compact principles are excluded from investment.


LEI 07. Processes to ensure screening is based on robust analysis

07.1. スクリーニングが徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを選択してください。

          Third party independent committee verifies bi-annually the continued validity of the environmental inclusion criteria and definitions, underpinning our positively screened investment universe.
        

07.2. 補足情報。 [任意]

Positive screening for environmental activity

Companies must have at least 20% of revenues from environmental or resource efficiency activities to be part of the Impax investment universe. Impax has dedicated staff developing and maintaining the investment universe. The entire universe is screened once a year to ensure that all companies still adhere to the minimum revenue target. Companies that no longer attain this minimum level of revenue are removed from the investable universe database. There is a third party independent committee that verifies bi-annually the continued validity of the environmental inclusion criteria and definitions, underpinning our positively screened investment universe.

Normative screening for UN Global Compact breaches

A third party ESG-research provider screens our investable universe every quarter to identify any potential UN Global Compact issues. Companies which are found to have minor issues are flagged and we monitor these particularly thoroughly and engage with these companies where relevant. Companies that are not compliant with the UN Global Compact principles are excluded from investment and excluded from our "A-list" or investable universe database. Companies involved in the production / manufacturing of cluster munitions or anti-personnel mines would also be screened out, as this constitutes as a human rights breach. We use external data providers to flag controversial business activities.

Screening of ESG criteria (ESG analysis)

ESG-analysis is an integral part of the Impax investment process. Our multi-step Listed Equities investment process incorporates ESG parameters into the investment analysis of companies through a thorough examination of company management/board structures, governance, ownership, corporate behaviour and Environmental and Social policies, processes and disclosures, following a materiality approach. We assign a proprietary ESG-rating for each company (Excellent, Good, Average, Fair and Excluded). If a company scores below a threshold-level, it will be automatically excluded from our investable universe. In addition, for Hong Kong and China-based companies, we have a further "governance tool" in place and we have identified five governance metrics that each company entering our investable universe must have in place. Finally, all companies must be approved by the Investment Committee on ESG-criteria before being admitted to the Impax universe of investable stocks.


LEI 08. Processes to ensure fund criteria are not breached

08.1. ファンドの基準に違反がないことを確認するために組織が使用しているプロセスを記載してください。

          Third party independent committee verifies bi-annually the continued validity of the environmental inclusion criteria and definitions, underpinning our positively screened investment universe.
        

08.2. ファンドのスクリーニング基準に対する違反が判明した場合、これらの違反を是正するために従うプロセスを説明してください。

Positive screening for environmental activity

Companies must have at least 20% of revenues from environmental or resource efficiency activities to be part of the Impax investment universe. The entire universe is screened once a year to ensure that all companies still adhere to the minimum revenue target. Companies that no longer attain this minimum level of revenue are removed from the investable universe database.   

Normative screening for UN Global Compact breaches

A third party ESG-research provider screens our investable universe every quarter to identify any potential UN Global Compact issues. Companies which are found to have minor issues are flagged and we monitor these particularly thoroughly and engage with these companies where relevant. Companies that are not compliant with the UN Global Compact principles are excluded from investment and excluded from our "A-list" or investable universe database. Companies involved in the production / manufacturing of cluster munitions or anti-personnel mines would also be screened out, as this constitutes as a human rights breach. We use external data providers to flag controversial business activities.

Screening of ESG criteria (ESG analysis)

ESG-analysis is an integral part of the Impax investment process. Our multi-step Listed Equities investment process incorporates ESG parameters into the investment analysis of companies through a thorough examination of company management/board structures, governance, ownership, corporate behaviour and Environmental and Social policies, processes and disclosures, following a materiality approach. We assign a proprietary ESG-rating for each company (Excellent, Good, Average, Fair and Excluded). If a company scores below a threshold-level, it will be automatically excluded from our investable universe, A-list and can not be traded in our trading systems. In addition, for Hong Kong and China-based companies, we have a further "governance tool" in place. We have identified five governance metrics that each company entering our investable universe must have in place. Finally, all companies must be approved by the Investment Committee on ESG-criteria before being admitted to the Impax universe of investable stocks.

We have a proprietary data analytics and risk tool (VIPER-analytics) that identifies and immediately flags any breaches to our screening rules and principles.

08.3. 補足情報。


(B) Implementation: Thematic

LEI 09. Types of sustainability thematic funds/mandates

09.1. 組織が運用している、サステナビリティをテーマとするファンドやマンデートの種類を記載してください。

09.2. 組織でのサステナビリティをテーマとしたファンドのプロセスについて説明してください。 [任意]

Impax Asset Management is a leading investment manager dedicated to investing in the opportunities created by the scarcity of natural resources and the growing demand for cleaner, more efficient products and services, through both listed and private equity strategies.

Impax's listed equity funds seek out mis-priced companies that are set to benefit from the long-term trends of climate change, inadequate infrastructure, environmental constraints, changing demographics, urbanisation and the resultant increases in resource scarcity. Investment is focused on a small number of deeply researched global equity strategies across alternative energy, energy efficiency, water, waste, sustainable food and agriculture and related markets.

As part of our investment process, we develop and maintain a large database of our entire investment universe, currently c. 1,600 companies. We review and update the exact % of revenue (or other business activity indicator) derived from the resource efficiency and environmental markets for each company on an annual basis. This process ensures that our investee companies are and continue to be part of the economy and sectors benefiting from resource and environmental opportunities and to further develop and expand our investment universe. The companies we invest in must derive at least 50% or 20% of revenues (depending on the strategy) from the resource efficiency and environmental sectors.

One person in the Impax investment team is dedicated to maintaining and developing our investment universe.

Impax is a thought leader in defining the markets in which we invest, for example through a partnership with FTSE to develop and manage the classification system underpinning the FTSE Environmental Markets Index Series.


(C) Implementation: Integration of ESG issues

LEI 10. Review ESG issues while researching companies/sectors

10.1. アクティブ戦略において企業やセクターを調査する際、ESG問題を見直しているかどうかについて記載してください。

ESG問題

これらの問題の見直しの対象および程度​

E(環境)

Environmental

S(社会)

Social

コーポレートガバナンス

Corporate Governance

10.2. 補足情報。 [任意]


LEI 11. Processes to ensure integration is based on robust analysis

11.1. ESG統合が徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを記載してください。

11.2. ポートフォリオマネージャーがどのようにESG情報を保管・使用しているかについて説明してください。

11.3. 補足情報。[任意]

We analyse company governance aspects from a country-perspective, as governance is mainly driven by local codes, rules, traditions etc. We look for potential outliers from a country-perspective.

We analyse company environmental and social aspects from a sector-perspective. We have determined what the most material environmental and social risks are for our sub-sectors and analyse how well companies address these risks through effective management systems and processes. We are minded that companies do not necessarily "fit well" into industry/sector groups and company activities are analysed for most material risks.  

We identify any controversies that companies have faced.

We write an ESG-write up and these elements are the basis for our proprietary ESG-rating. We review the ESG analysis and score on an annual basis or if a material event occurs.  

The ESG-ratings are available for the entire investment team in our market data provider system, in the universe and investable universe databases and in the risk management and portfolio review as well as portfolio construction materials.

ESG issues are a standing agenda item at the weekly Investment Committee meetings and during the weekly portfolio review meetings for the various listed equity strategies.


LEI 12. Aspects of analysis ESG information is integrated into

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12.1. 投資分析のどの側面にESG情報を統合しているかを記載してください。

12.2a. ESG情報を適正価値/ファンダメンタル分析やポートフォリオの構築へと統合するプロセスについて、組織でのプロセスの一部となっている手法を選択してください。

12.3. ESG情報をポートフォリオの構築にどう統合しているかを説明してください。

  • We have established the material ESG-risk criteria at the sub-sector levels.
  • Our ESG-analysis is very focused on the operational management of the company, as well as its governance structures, internal control and e.g. accounting and tax practices.
  • Policy and regulatory issues facing companies are an important part of our ESG-analysis.
  • Company strategy is a very important aspect of analysis and in our view companies that thoroughly understand their main ESG-risks and have strong sustainability processes in place to address these, are much better positioned and resilient in the face of challenges.
  • Our portfolio construction process takes ESG into account; companies with some ESG-weakness (scoring "fair") have their position sizes capped in the portfolios for risk management purposes, while the companies scoring strongly on ESG, give conviction to the lead analyst / portfolio manager.  

 

12.4a. 利益予想/バリュエーションツールの修正に使用した手法を説明してください。

We have made some early work on applying a higher WACC (weighted average cost of capital) on companies with higher company or sector-specific ESG risks.

12.2b. ESG情報を適正価値/ファンダメンタル分析および/またはポートフォリオの構築へと統合するプロセスについて、組織でのプロセスの一部となっている手法を選択してください。

12.4b. 利益予想/バリュエーションツールの修正に使用した手法を説明してください。

We have made some early work on applying a higher WACC (weighted average cost of capital) on companies with higher company or sector-specific ESG risks.

12.5. 補足情報。


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