In the external equity and fixed income team, we consider ESG aspects in the selection process through questions in our RFP. In addition to these explicit questions, we only choose managers who share our long investment horizon, which means their values are aligned with ours. Given the long term investment horizon of our managers, in most cases they do incorporate ESG analysis into their investment decision making. In our investment management agreements/contracts, a norm-based exclusion screen (on inhumane weapons) is applied, but other than that we do not include explicit ESG criteria.
In our monitoring process we often discuss ESG issues with our managers. In addition to these ad hoc conversations we have an annual ESG questionnaire sent to all of our external equity and FI managers.
In Private Equity we question the fund managers on ESG matters in our due diligence process. ESG is also discussed in the Limited Partner Advisory Committees annually in the majority of our funds. Many of our funds have introduced annual ESG reporting, making it more transparent to monitor the progress on ESG aspects.