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Sunsuper

PRI reporting framework 2018

You are in Strategy and Governance » Asset class implementation not reported in other modules

Asset class implementation not reported in other modules

SG 16. ESG issues for internally managed assets not reported in framework (Not Applicable)


SG 17. ESG issues for externally managed assets not reported in framework

17.1. Describe how you address ESG issues for externally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Fixed income - Corporate (financial)

All potential Fixed Income investments require ESG consideration. The manager is assessed against a rating system that rates absolute and relative strength in this area and this is incorporated into an overall score. An independent review of ESG capabilities is performed by Mercer, our FI consultant. Further, consideration is given to the managers' ESG policy and processes, its membership of the UNPRI and other like minded organisations. In addition, consideration is given to the extent the manager rates sovereign risks relating to bribery, corruption, transparency and climte change. The ESG manager participates in the investment approval process.

Private equity

All potential Private Equity investments require ESG consideration. The manager is assessed against a scoring system that rates absolute and relative strength in this area and this is incorporated into an overall score. An independent review of ESG capabilities is performed by Stepstone, our PE consultant. Further, consideration is given to the managers' ESG policy and processes, its membership of the UNPRI and other like minded organisations. In addition, consideration is given to the industries and countries in which the manager is likely to operate. The ESG manager participates in the investment approval process.

Infrastructure

All potential Infrastructure investments require ESG consideration. The manager is assessed against a scoring system that rates absolute and relative strength in this area and this is incorporated into an overall score. An independent review of ESG capabilities is performed by JANA, our Infrastructure consultant. This is focussed on the governance rights attached to a particular deal. At times, we may appoint a director to the management firm. Further, consideration is given to the managers' ESG policy and processes, its membership of the UNPRI and other like minded organisations. In addition, consideration is given to the industries and countries in which the manager is likely to operate, and the social impact it is likely to have on the local area given it is an infrastructure project. The ESG manager participates in the investment approval process.

Hedge funds - DDQ

Select whether you use the PRI Hedge Fund DDQ

Hedge funds

We are a member of the HSFB (Hedge Funds Standards Board). However, we have found it difficult to seriously integrate Responsible investment into the portfolio. This has been due to -

1. Our consultant does not appear to consider RI within its due diligence process

2. Disclosure of underlying holdings is opaque

3. As an investor in a fund, we appear to less power or influence compared with separate accounts.

We do, however, consider the directors of the organisation and, in particular, the number of directorships the Cayman-based directors have.

17.2. Additional information.


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