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Hannoversche Alterskasse VVaG

PRI reporting framework 2017

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income

ESG incorporation in actively managed fixed income

Implementation processes

FI 04. Incorporation strategies applied

04.1. Indicate 1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and 2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.

SSA
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

04.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

Our incorporation strategy is based on investments which includes traditional investment criteria (such as minimizing risk, return and liquidity) and also social, ecological and ethical criteria in the selection of investment properties.

04.3. Additional information [Optional].


FI 05. ESG issues and issuer research (Private)


FI 06. Processes to ensure analysis is robust

06.1. Indicate how you ensure that your ESG research process is robust:

06.2. Describe how your ESG information or analysis is shared among your investment team.

06.3. Additional information. [Optional]


(A) Implementation: Screening

FI 07. Types of screening applied

07.1. Indicate the type of screening you conduct.

Select all that apply
SSA
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

07.2. Describe your approach to screening for internally managed active fixed income

We include criteria such as Product, Activity, Sector, Country/geographic region, environmental social practices and Corporate governance in our screening. For some criteria we allow corporations a percentage share that must not be exceeded (for example not more than 5% turnover in nuclear power plants).

07.3. Additional information. [Optional]


FI 08. Negative screening - overview and rationale

08.1. Indicate why you conduct negative screening.

SSA

SSA

08.2. Describe your approach to ESG-based negative screening of issuers from your investable universe.

We receive various sustainable criteria from "imug Beratungsgesellschaft", a company that is specialized on ESG-screening. The company awards potential issuers with marks from 1-3. 1 means sustainable, 2 is neutral and 3 is not sustainable. We don't invest in any issuers that are marked worse than 2.

08.3. Additional information. [Optional]

It is possible that a potential issuer is marked with a 2 or even better by "imug Beratungsgesellschaft" but nevertheless we mark them with a 3 (for example Italy breaches against corruption or France against Atomic weapons).


FI 09. Examples of ESG factors in screening process (Private)


FI 10. Screening - ensuring criteria are met

10.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Negative/exclusionary screening?

other description

          Comprehensive research is undertaken or sourced to determine issuers' ESG performance.
        

10.2. Additional information. [Optional]

Additional an independent comittee (our sustainable council) discusses regularly twice a year investment decisions.


(C) Implementation: Integration

FI 14. Integration overview

14.1. Describe your approach to integrating ESG into traditional financial analysis.

First of all the return of interest is very important for us because we want to satisfy all our members. We have the opinion that integrating ESG into the traditional financial analysis does not reduce the return of interest.


We get our sustainable results from "imug Beratungsgesellschaft" and exceed all potential issuers of the investment universe that are marked worse than 2. Afterwards we combine these results with our own criteria and we decide which issuer can be considered.

14.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

SSA

In additon to the above mentioned approach we consider criteria such as Freedom house index, corrupion perception index, death penalty, weapons of mass destruction.

14.3. Additional information [OPTIONAL]

In additon to the above mentioned approach we consider criteria such as breach against human rights, owner of nuclear weapons, Bribe and corruption, genetically engineered crops.


FI 15. Integration - ESG information in investment processes

15.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
SSA
ESG analysis is integrated into fundamental analysis
ESG analysis is integrated into security weighting decisions
ESG analysis is integrated into portfolio construction decisions
ESG analysis is a standard part of internal credit ratings or assessment
ESG analysis for issuers is a standard agenda item at investment committee meetings
ESG analysis is regularly featured in internal research notes or similar
ESG analysis is a standard feature of ongoing portfolio monitoring
ESG analysis features in all internal issuer summaries or similar documents
Other, specify

15.2. Additional information [OPTIONAL]


FI 16. Integration - E,S and G issues reviewed

16.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Environment
Social
Governance
SSA

Environmental

Social

Governance

16.2. Please provide more detail on how you review E, S and G factors in your integration process.

SSA

We receive a single mark (10 of 10) for environmental, social and governance by our sustainable service provider "imug Beratungsgesellschaft". The individual criteria are weighted by importance.

16.3. Additional information.[OPTIONAL]


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