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de Pury Pictet Turrettini & Cie

PRI reporting framework 2017

You are in Direct - Listed Equity Active Ownership » Engagement

Engagement

Overview

LEA 01. Description of approach to engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate whether your organisation has a formal engagement policy.

01.2. Indicate what your engagement policy covers:

01.3. Attach or provide a URL to your engagement policy. [Optional]

Attach document


01.4. Provide a brief overview of your organization’s approach to engagement

The Fund pursues an active-ownership strategy based on three pillars: exercising our voting rights; engaging with the companies to improve their quality in relation to the UN Global Compact principles; and engaging with them on their most financially material issues.

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/

01.5. Additional information [optional]

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


LEA 02. Reasoning for interaction on ESG issues

02.1. Indicate the method of engagement, giving reasons for the interaction.

Type of engagement

Reason for interaction

Individual/Internal staff engagements

          PPT supports and is included in the engagement process performed by the Guilé Engagement Team (e.g. identification of issues, performance assessment of the process).
        

Collaborative engagements

Service provider engagements

02.2. Additional information. [Optional]

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/

 

 


Process

Process for engagements run internally

LEA 03. Process for identifying and prioritising engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagement activities carried out by internal staff.

03.2. Describe the criteria used to identify and prioritise engagement activities carried out by internal staff.

03.3. Additional information. [Optional]

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


LEA 04. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

04.1. Indicate if you define specific objectives for your engagement activities.

04.2. Indicate if you monitor the actions that companies take following your engagements.

04.3. Indicate whether your organisation defines milestones and goals for engagement activities carried out by internal staff.

04.4. Indicate if you do any of the following to monitor and evaluate the progress of your engagement activities carried out by internal staff.

04.5. Additional information. [Optional]

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


Process for engagements conducted via collaborations

LEA 05. Process for identifying and prioritising collaborative engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

05.1. Indicate whether your organisation has a formal process for identifying and prioritising collaborative engagements

05.2. Describe the criteria used to identify and prioritise collaborative engagements

05.3. Additional information [Optional]

Collaborative engagement happens parallel to our direct engagement - opportunitstic approach.

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


LEA 06. Objectives for engagement activities (Not Completed)


Process for engagements conducted with/on your behalf by service providers

LEA 07. Role in engagement process

New selection options have been added to this indicator. Please review your prefilled responses carefully.

07.1. Indicate if you play a role in the engagement process that your service provider conducts on your behalf.

07.2. Indicate the role(s) you play in engagements that your service provider conducts on your behalf.

07.3. Additional information. [Optional]

By engagins with companies we strengthen our understanding and fundamental analysis of the companies. Our managers’ assessments of the risks and sustainability of the companies’ business models are sharpened, and their investment convictions are more solidly based. With time, the markets perceive and reward the uptrend in the companies’ quality and this is reflected in the value of our investments.

Our visits and discussions enhance our ability to evaluate the consistency between a company’s words and its concrete actions. Lastly, the high-quality companies thus identified must still present attractive potential for gains in the medium and long term.

The joint presence of the Fondation Guilé experts and the portfolio managers, which is unique in the responsible-funds universe, is particularly appreciated by companies. As a result, 85 per cent of the companies maintain a regular dialogue with us. This integration of different skills enables us to fine-tune the discussion according to the company’s specific business model and the financial materiality of its ESG issues.

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


LEA 08. Monitor / discuss service provider information

08.1. Indicate whether you monitor and/or discuss the following information provided to you by your service provider

Please select all that apply

08.2. Additional information. [Optional]

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


General processes for all three groups of engagers

LEA 09. Share insights from engagements with internal/external managers

09.1. Indicate if insights gained from your engagements are shared with your internal or external investment managers.

Type of engagement

Insights shared

Individual/Internal staff engagements

Collaborative engagements

Service provider engagements

09.2. Additional information. [Optional]

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


LEA 10. Tracking number of engagements

10.1. Indicate if you track the number of engagements your organisation participates in.

Type of engagement
Tracking engagements

Individual / Internal staff engagements

Collaborative engagements

Service provider engagements

10.2. Additional information. [OPTIONAL]

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


Outputs and outcomes

LEA 11. Number of companies engaged with, intensity of engagement and effort

11.1. Indicate the amount of your listed equities portfolio with which your organisation engaged during the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion (to the nearest 5%)
Specify the basis on which this percentage is calculated

Individual / Internal staff engagements

0 Number of companies engaged
0 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

Collaborative engagements

1
2 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

Service provider engagements

82
98 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

11.2. Indicate the proportion of engagements that involved multiple, substantive and detailed discussions or interactions with a company during the reporting year relating to ESG issue.

Type of engagement

% Comprehensive engagements

 

 

Individual / Internal staff engagements

 

 

Collaborative engagements

 

 

Service provider engagements

11.3. Indicate the percentage of your collaborative engagements for which you were a leading organisation during the reporting year.

Type of engagement

% Leading role

 

 

Collaborative engagements

11.4. Indicate the percentage of your service provider engagements that you were highly involved in during the reporting year.

Type of engagement

% High involvement

 

 

Service provider engagements

11.5. Additional information. [Optional]

Our portfolio managers participate actively to all our engagement meetings and briefings together with our dedicated external service provider. This is a key differentiating and success factor for our truly integrated approach and we regret that it is not sufficiently taken into account in this questionnaire.

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


LEA 12. Engagement methods

12.1. Indicate which of the following your engagement involved.

12.2. Additional information. [Optional]

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/

 


LEA 13. Engagements on E, S and/or G issues (Not Applicable)


LEA 14. Companies changing practices / behaviour following engagement

14.1. Indicate whether you track the number of cases during the reporting year where a company changed its practices, or made a formal commitment to do so, following your organisation’s and/or your service provider's engagement activities.

14.2. Indicate the number of companies that changed or committed to change in the reporting year following your organisation’s and/or your service provider's engagement activities.

Number of company changes or commitments to change

Individual / Internal staff engagements

Collaborative engagements

Service provider engagements

49

14.3. Additional information [Optional].

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


LEA 15. Examples of ESG engagements

15.1. Provide examples of the engagements that your organisation or your service provider carried out during the reporting year.

Topic or ESG issue
          Weaknesses observed on the 10 principles of the Global Compact - Communication on Progress
        
Conducted by
Objectives

Generate improvements on the issues linked to the 10 principles of the Global Compact

Scope and Process

We first make an assessement of the company on the quality of the ESG publicatilon and on its comprehensiveness.

The results are sent to the company management

A briefing/meeting is organized to discuss the SWOT or our analysis. We give examples of best practices and areas with potential of progress which we monitor year on year.

Outcomes

Our engagement with "Company" stays consistently constructive and positive over the years and we saw improvement, particularly on Environmental principles and anti-corruption.
"Company" included four participants with different functions to the conference call which showed a genuine interest into our discussion and the fact that the company is taking our suggestions very seriously.

Topic or ESG issue
          Weaknesses observed on the 10 principles of the Global Compact - Communication on Progress
        
Conducted by
Objectives

Generate improvements on the issues linked to the 10 principles of the Global Compact

Scope and Process

We first make an assessement of the company on the quality of the ESG publicatilon and on its comprehensiveness.

The results are sent to the company management

A briefing/meeting is organized to discuss the SWOT or our analysis. We give examples of best practices and areas with potential of progress which we monitor year on year.

Outcomes

This is the second discussion since the company’s entrance in the portfolio and globally the company does more than what it communicates.
Even though there has been progress since the first exchange and the representatives are aware of the growing requests from the rating agencies, we will be keen to meet the company again to evaluate the new steps achieved within next year.

Topic or ESG issue
          Weaknesses observed on the 10 principles of the Global Compact - Communication on Progress
        
Conducted by
Objectives

Generate improvements on the issues linked to the 10 principles of the Global Compact

Scope and Process

We first make an assessement of the company on the quality of the ESG publicatilon and on its comprehensiveness.

The results are sent to the company management

A briefing/meeting is organized to discuss the SWOT or our analysis. We give examples of best practices and areas with potential of progress which we monitor year on year.

Outcomes

At the last interaction with the company we strongly suggested publishing those policy documents to which "Company" was explicitly referring in its disclosure, in particular the EHS guideline.
In 2016, based on this recommendation the company has released both, its “Commitment to Environment, Health and Safety” as well as its “Position Statement on the Convention on Biological Diversity”. Further, the suggestion to critically review the outdated code of conduct (CoC) was taken up: "Comapny" has launched internally a new business CoC accompanied by a series of webinars for the top 200 managers who have the task to introduce it within their sphere of responsibility. Internally, a discussion is taking place if the new Business CoC (or at least the main elements) shall be published or not which is strongly recommended by GET. In near time, the Responsible Sourcing Policy will be published complementing the existing Vendor Principles of Business Conduct which covers mainly qualitative aspects required from suppliers.

Topic or ESG issue
          Weaknesses observed on the 10 principles of the Global Compact - Communication on Progress
        
Conducted by
Objectives

Generate improvements on the issues linked to the 10 principles of the Global Compact

Scope and Process

We first make an assessement of the company on the quality of the ESG publicatilon and on its comprehensiveness.

The results are sent to the company management

A briefing/meeting is organized to discuss the SWOT or our analysis. We give examples of best practices and areas with potential of progress which we monitor year on year.

Outcomes

Last year’s recommendations of the engagement team haven’t been taken up so far, several advancements are announced which will go in the right direction. 
Among others, in 2017 a comprehensive materiality analysis similar to the initial exercise in 2014 will take place.
In the course of this review the presentation of the material issues and related measures will also be revised.
Our suggestion to better explain internal procedures and responsibilities required to assure employees’ adherence to the standards of integrity of "Company" is well received and the Senior Manager of Corporate Responsibility Reporting is announcing to follow-up on this valuable feedback.

Topic or ESG issue
          Weaknesses observed on the 10 principles of the Global Compact - Communication on Progress
        
Conducted by
Objectives

Generate improvements on the issues linked to the 10 principles of the Global Compact

Scope and Process

We first make an assessement of the company on the quality of the ESG publicatilon and on its comprehensiveness.

The results are sent to the company management

A briefing/meeting is organized to discuss the SWOT or our analysis. We give examples of best practices and areas with potential of progress which we monitor year on year.

Outcomes

This year’s briefing is again characterized by a very open and constructive dialogue between the representatives of  "Company" and the Cadmos team.
Questions are frankly and competently answered, suggestions positively received. In the previous briefings it was suggested to either validate the sustainability
reporting by a third party or preferably to introduce a formal stakeholder panel. Such a panel of external experts representing different stakeholder
views and expectation would help "Company" to continuously review its material issues and simultaneously to validate related measures.
This proposal was taken-up by the executive management and Head Corporate Communications & Investor Relations got the task to form and operationalize a Sustainability Advisory Council in the current year.
The kick-off took place on 12-09-2016 and we were invited to participate. In June 2016, we was also participated in an interview arranged by "Company" aimed at identifying major weaknesses of company’s sustainability management.

Topic or ESG issue
          Weaknesses observed on the 10 principles of the Global Compact - Communication on Progress
        
Conducted by
Objectives

Generate improvements on the issues linked to the 10 principles of the Global Compact

Scope and Process

We first make an assessement of the company on the quality of the ESG publicatilon and on its comprehensiveness.

The results are sent to the company management

A briefing/meeting is organized to discuss the SWOT or our analysis. We give examples of best practices and areas with potential of progress which we monitor year on year.

Outcomes

With six company representatives from Investors Relation and Sustainability Management the company proved its positive attitude towards
 stakeholder engagement and ambition to continuously improve its business practices. Again, the "Company" demonstrated a great interest
 in understanding the reasons of our assessment and posed definite, self-critical questions.
Recommendations were well perceived and additional asked questions which have been sent by email in the aftermath were timely and adequately answered.
Two recommendations made at the previous meeting have been taken-up: the old-fashioned Code of Conduct of 2009 has been fully revised. It is now signed by the CEO and is presented in an inspiring design. Further, at group level a compliance office has been formed in charge to assuring group wide adherence to internal codes and policies besides national laws and regulations.

Topic or ESG issue
          
        
Conducted by
Objectives
Scope and Process
Outcomes

"Company" acknowledges in its extended COP our engagement as follows “We would like to acknowledge the analyst team at Guilé Foundation who in their annual benchmark of companies in their investment portfolio offer valuable suggestions for continued improvement of the Communication on Progress”.
The discussions with the 3 representatives of "Company", with the Vice President Global Triple Bottom Line Management for the 7th time, were again highly trust-based and of very constructive nature. The recommendations were well taken and some changes have been announced during the meeting such as that internal policy documents will be made publically available and UNGP reporting framework will be applied. Last year’s suggestion to better distinguish between policy documents and performance reporting was adopted in so far that the COP 2015 is more focused and contains more specific information on taken measures.

15.2. Additional information. [Optional]

We have developed a proprietary ESG investment strategy called "Buy & Care".

Please refer to the methodology and results as described within our integrated performance reports:
https://www.ppt.ch/buycare/


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