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The Scott Trust Limited (Guardian Media Group)

PRI reporting framework 2018

You are in Indirect – Manager Selection, Appointment and Monitoring » Outputs and outcomes

Outputs and outcomes

SAM 08. Percentage of externally managed assets managed by PRI signatories

08.1. Describe how you ensure that best RI practice is applied to managing your assets

Measures

          Monitoring of firm and fund level RI informs engagement with managers on RI issues.
        

Measures

          This is an ongoing process, involving selection based on ESG integration, responsible ownership practices by external managers, fossil fuel divestment and proactive investment in sustainable solutions to the low carbon economy. We moved substantial assets to managers with better RI practices during the period
        
          We have aimed to more broadly change manager behaviour around RI and drive product creation where gaps existed meeting our RI requirements
        

Measures

          We were a key anchor for the launch of an innovative new clean energy equity fund during the period and had input in specific policy safeguards on RI issues prior to launch. Our suggestions were incorporated by the manager. We also engaged with two hedge funds over their energy holdings during the period. In both cases, this constructive engagement led to the creation of a new RI share class. We invested in both new share classes during the period.
        

08.2. Additional information. [Optional]


SAM 09. Examples of ESG issues in selection, appointment and monitoring processes

09.1. Provide examples of how ESG issues have been addressed in the manager selection, appointment and/or monitoring process for your organisation during the reporting year.

Topic or issue
          Sustainable Global Equity - Selection of new thematic manager with best in class ESG integration, active ownership and transparency (voting and engagement) and performance
        
Conducted by
Asset class
Scope and process

(Conducted internal staff with assistance from consultants)

Strongly believing in the materiality of sustainability for both financial returns and alignment with our principles, for the reporting period we set an objective to continue moving our holdings into managers showing leadership and innovation here. 

Outcomes

During the period, the selection process led us to make a substantial new allocation to a specialist manager solely focussed on long term sustainability in global public equity.

Their investment process is one of rigorous fundamental company analysis in which consideration of environmental, social, and governance (ESG) factors and the growing risks they may represent, adds rigor when looking at companies over a ten-year horizon. They have used this ESG lens to substantially outperform indexes and peers.

We were particularly impressed with the significant emphasis on active ownership and constructive engagement when investing in companies on a path of improvement both in terms of financial and sustainability quality. There is strong quantitative evidence of the manager improving companies with this approach, driving tangible ESG improvements on a wide range of issues. The level of detail and transparency on active ownership provided to us as investors for monitoring is also truly exceptional.

09.2. Additional information.


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