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Colonial First State Global Asset Management (including First State Investments)

PRI reporting framework 2017

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Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

Three year objectives for responsible investment have been set in our Responsible Investment strategy which has been approved by the Global Responsible Investment Steering Group (GRISG).  The GRISG is chaired by the CEO and includes a sub-set of the operating group (executive group) including the chief investment officers. 

The Objectives in the RI Strategy are included in the KPIs for our responsible investment team and for the responsible group executives.

Monitoring of objectives (KPIs) occurs half yearly through the performance management process for all employees and when the GRISG meets.

We publicly disclosure objectives and our performance against them in our annual responsible investment report which is available at: 

SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          1. Implement 3 tier training model

Progress achieved

We are in process of developing a three tiered training program which will cover:

  1. Universal RI training for all employees which covers the basics of RI and Stewardship, our policies and beliefs (drafted).
  2. Expert updates - guest speakers addressing investment teams on specific subjects (ongoing)
  3. Internal training and guidelines - Issue specific guidelines developed by the ESG committee (currently developing human rights (complete), climate change and executive remuneration (both in progress)

 Training on the use of the tools and research providers we have developed is also being rolled out.

Key performance indicator

          Improved understanding of RI principles and practice across the organisation. Measured by annual engagement survey responses on RI questions.

Progress achieved

  • Quaterly RI Newsletter now being sent
  • Investment beliefs survey conducted with senior leaders, broader roll out in 2017
  • RI Training program developed
  • ESG Committee sub-groups focused on climate change, human rights and remuneration launched. 

Key performance indicator

          1. Develop engagement priorities and execution plans with investment teams
2. Implement systems and processes to capture engagement activity and outcomes

Progress achieved

We have are in the process of developing an improved engagement process which we will be trialling with  our Australian equity teams during 2017. The process will cover market issues, company specific issues and collaboration opportunities. To date a proposal has been drafted and clients have been engaged for feedback. 

Key performance indicator

          1. Implement ESG monitoring systems and processes
2. Integrate data on climate risk

Progress achieved

Ratings from our external ESG research providers have been integrated with holdings and benchmark information in our data warehouse. An interactive ESG reporting tool has been developed using the database. The tool is used to provide Global Investment Committee reporting and will be rolled out to investment teams by July 2017.

In terms of climate change related data, we conducted a tender process in 2016 and have selected a preferred provider. We are currently agreeing commercial terms and hope to use the data to enhance our climate change disclosure in our 2017 RI report. 

          Improve collaboration between teams on proxy voting

Key performance indicator

          Equity teams given an opportunity to discuss issues prior to all controversial votes.

Progress achieved

Work to commence in second half of 2017, currently remains ad-hoc and co-ordinated by the RI team. 

other description (2)

          Enhance and strengthen RI policies for all teams

Key performance indicator

          Update of key policies and specific issue guidance developed

Progress achieved

Investment beliefs survey approved and ready to be issued in March 2017 across the business.

Human rights and stranded assets guidance notes developed and issued. Climate change and executive remuneration guidance being developed. 

Financial performance of investments

ESG characteristics of investments

Other description (1)

          Integrating RI and ESG Risks into quarterly Global Investment Committee reporting

Key performance indicator

          Team and portfolio level reporting provided Global Investment Committee quarterly

Progress achieved

Completed for equity teams. Fixed income under development and to be added from July 2017.

Other description (2)

          Integrate RI and ESG assessments into annual product reviews

Key performance indicator

          All product reviews to include ESG assessment and opportunities

Progress achieved

Trial performed on one team.

Other activities

Key performance indicator

          Annual review of RI initiatives

Progress achieved

Completed in December 2016. Current initiatives under SG 09.1

Key performance indicator

          Delivery of annual RI report and PRI report on progress, including case studies.

Progress achieved

2016 RI and Stewardship report delivered in May 2016 -

2017 report due for launch in June 2017

06.2. Additional information.