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TT International

PRI reporting framework 2018

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

実施プロセス

LEI 01. Percentage of each incorporation strategy

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。

01.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
100 %
アクティブ運用している上場株式の合計 100%

01.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

At TT International, we believe that high standards of corporate responsibility tend to make good business sense and have the potential to protect and enhance investment returns. Consequently, our investment process specifically integrates ESG considerations into our investment analysis and is always discussed as part of a stock’s Investment Case prior to purchase..

The analysis of a company’s ESG performance is integrated into the investment process at TT and is formalised into our investment case template. ESG integration is primarily carried out by TT’s investment analysts, but our portfolio managers also actively analyse potential ESG factors when making investment decisions. Such analysis enhances our understanding of a company and its ability to deliver sustainable long term shareholder value. We accept that it is not always possible to apportion investment value to ESG issues but believe ESG performance can provide a proxy for the quality of management and as such can be integrated into stock valuation. On occasion, some ESG issues may have direct financial relevance (e.g. carbon emissions, water scarcity) and in these instances we endeavour to integrate these considerations into our valuation process.

TT's risk team maintains an ESG screen which analyses our portfolio across 11 different ESG risk factors. The aim of the screen is to identify areas of concern or missing information so as to guide further bottom-up research. The 'score' on the screen is never sufficient justification for an investment decision, but rather is a tool to aid our analysis. There is no substitute for our own fundamental ESG research.

 

01.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]


LEI 02. Type of ESG information used in investment decision (Private)


LEI 03. Information from engagement and/or voting used in investment decision-making (Private)


A) 実施:スクリーニング

LEI 04. Types of screening applied

04.1. 組織内でアクティブ運用している上場株式に適用するスクリーニングの種類を記載し、説明してください。

スクリーニングの種類

スクリーニング実行者

説明

TT has developed it's own, bespoke ESG ‘scorecard’ to quantitatively score each holding according to 14 metrics.

04.2. スクリーニング基準の設定方法、基準の見直し頻度、基準の変更を顧客や受益者に通知する方法について説明してください。

ESG analysis is fully integrated into TT's investment process from the inception of any stock analysis. Indeed just as the Investment Case template expects commentary on valuation assumptions and risks, so it is also mandatory to comment on Environmental, Social and Governance headwinds or tailwinds in stock selection. With an explicit focus on companies with persistently high quality attributes, the process also has a natural bias away from those with a poor ESG history. With focused and concentrated portfolio construction, combined with low turnover, every stock chosen must be of the highest conviction. If there is doubt about the company, either at the financial level (deliverability of earnings, balance sheet quality, for example) or at the ESG level (questions of labour exploitation, or unattractive management structure, for example), then there is no need to own any specific stock, and the team will focus their attention elsewhere.   

Our monitoring process flows from our ESG risk monitor which identifies areas for further ESG investigation and analysis. These flagged issues are referred to the Analyst in question for further work. We do not formally ‘measure’ the consequence of engagement activities but subjectively assess whether a company has taken steps to mitigate or remove the concerns that we have. Where the company has not, and we believe these concerns are a significant detriment to the outlook to shareholder value, we may reduce our holding. When improvement in ESG factors is a specific catalyst in the company’s Investment Case we formally monitor the results of our engagement as part of our review of the investment.

We would not formally notify clients of eny evolvement of our ESG screening criteria, however; we would notfiy the clietn upon and request for information.


LEI 05. Processes to ensure screening is based on robust analysis

05.1. スクリーニングが徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを選択してください。

05.2. ESGスクリーニング戦略の一環で包括的なESG調査の対象となるアクティブ上場株式ポートフォリオの割合を示してください。

05.5. 補足情報 [任意]


LEI 06. Processes to ensure fund criteria are not breached (Private)


B) 実施:テーマ

LEI 07. Types of sustainability thematic funds/mandates

07.1. 組織が運用している、サステナビリティをテーマとするファンドやマンデートの種類を記載してください。

07.2. 組織でのサステナビリティをテーマとしたファンドのプロセスについて説明してください。 [任意]


C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. 投資分析の一部として体系的に調査するESG要因と、この分析の影響を受けるアクティブ戦略の上場株式ポートフォリオの割合を記載してください。

ESG問題

影響を受ける割合
Environmental

E(環境)

Social

S(社会)

Corporate Governance

コーポレートガバナンス

08.2. 補足情報 [任意]


LEI 09. Processes to ensure integration is based on robust analysis (Private)


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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