This report shows public data only. Is this your organisation? If so, login here to view your full report.

Zürcher Kantonalbank

PRI reporting framework 2018

Export Public Responses
Pdf-img

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%)
23 %
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%)
63 %
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%)
14 %
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。

1.  => screening alone: For all actively managed listed equities (funds & mandates) we systematicly exclude producers of controversial weapons

Definition of controversial weapons:

  • Anti-personnel landmines
  • Biological and chemical weapons
  • Nuclear weapons
  • Small and light arms (added 2017)
  • Munitions and explosives for weapons
  • Cluster bombs and cluster munition

2. => screening  & integration strategy:  For actively managed equity funds and equity mandates (except quantitative managed funds/mandates)

  • We systematicly exclude producers of controversial weapons
  • We integrate ESG-Data (such as general ESG-Scores, Carbon Footprint, Reputational Risks or Governence Issues and so on). Details for ESG

ESG integration approach equities

First goal: We want to avoid investing in companies which have an unfavourable risk-return-profile, due to material ESG risks not yet (well) reflected in the valuation. We strive to identify potential risks to shareholders which could disrupt the share price.

How? The in-house ESG research team provides a database and a template which allows PM/Analysts to calculate the ESG indicator (ESG-I) for each company of the MSCI AC World Index and displays it graphically. The ESG indicator and its sub-scores in the environmental, social and governance field are ranked on a scale from one to ten and illustrated by colours from green (i.e. good) to red (i.e. bad). The scores rank a company within its global peer group industry (GICS level 3). When addressing the ESG issues, PM/Analysts are required to discuss the potential impact on valuation with the different ESG analysts to better understand whether the ESG issues are sufficiently reflected in the share price. These ESG issues are mostly sector relevant and should be addressed during an interaction with company and/or broker/analyst.

Second goal: We want to improve our understanding of the key economic drivers of each industry by addressing the key ESG challenges per industry.

How? Every analyst/PM gets an input based on industry specific ESG criteria in order to be able to define the relevant and material industry drivers. For successful investing it is imperative to understand the key economic drivers of each industry. In order to understand them, it is crucial to know if an industry is faced with severe ESG challenges (risk view). Within the quality assessment of the companies IAEN will provide for every industry the most material ESG criteria (so-called ESG KPI’s). The KPI’s are highlighted on the ESG template along with the connected material ESG questions which should be used when engaging with companies. The ESG KPI’s are presented and updated (if necessary) to the analysts/PM’s within the framework of the industry review meetings taking place regularly.

Comprehensive Publication of ESG-Integration in listed equities: https://products.swisscanto.com/dam/jcr:8ce3c23b-4bc3-43d7-8c2d-642f0f472001

 

3. => All three strategies combined:  For all sustainable investment products

We distinguish between two different product-lines:

  • Product-line "Sustainable"
  • Product-line "Responsible"

3.1 For our product-line "Sustainable"

Ex-ante exclusion criteria:
=> Anthropogenic climate change 

  • Companies with coal reserves
  • Extraction of fossil fuels
  • Operation of fossil-fuel power stations
  • Production of cars and aircrafts
  • Airlines 

=> Endangerment of the Earth's atmosphere

  • Production of substances that deplete the ozone layer

=>Loss of biodiversity

  • Not sustainable forestry
  • Not sustainable fishery and fish farming
  • Not sustainable palm-oil plantations
  • Genetic engineering

=> Threat to society and health

  • Nuclear energy
  • Production of arms and war material
  • Production of tobacco and smoking products
  • Production of alcohol (turnover threshold 5%)
  • Gambling (turnover threshold 5%)
  • Child labour (own operations)
  • Pornography

The application of the exclusion criteria is followed by a sector analysis: The aim is to extract those companies in their respective industries and regions that set an example by excelling at taking responsible actions in terms of environmental protection, social and governance issues. The selection of is based on a multi-step process. The quantitative analysis compares roughly 50 environmental, social and corporate governance indicators. The data is obtained from specialized providers (such as Asset4, Trucost, MSCI ESG Research & Governance Metrics or RepRisk). Then, we carry out a qualitative product and sector analysis, which is mainly built on the know-how, experience and industry-specific knowledge of our analysts.

The sector analysis is followed by a fundamental stock analysis with a strong focus on companies with a high "sustainability impact". The following investment opportunities were defined: Energy: Renewable energy, energy efficiency. Sustainable Mobility: Public transport, Individual transport. Knowledge: Education/Research, Interlinking. Health: Access to basic health supply, Preservation of health. Finance: Access to financial services, Financial infrastructure. Resources: Efficient use of water, resource efficiency.

 

3.1 For our product-line "Responsible":

Ex-ante exclusion criteria for companies:

=> Anthropogenic climate change

  • Companies with coal reserves

=>Loss of biodiversity

  • Genetic engineering

=> Threat to society and health

  • Nuclear energy
  • Production of arms and war material
  • Production of tobacco and smoking products
  • Production of alcohol (turnover threshold 5%)
  • Gambling (turnover threshold 5%)
  • Child labour (own operations)
  • Pornography

Laggard-out process: The application of the exclusion criteria is followed by a sector analysis: The aim is to exlude around 20% of the worst companies in their respective industries and regions in terms of environmental protection, social and governance issues. The quantitative analysis compares roughly 50 environmental, social and corporate governance indicators (same process as product-line "Sustainable"). The sector analysis is followed by a fundamental stock analysis which uses also ESG-data for the stock selection (same process as for for all actively managed equity funds and equity mandates.

 

 

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]

We use a combination of all three strategies for our productline "Sustainable": In order to define the range of sustainable products, the analysts apply a selection of very stringent exclusion criteria. The application of the exclusion criteria is followed by a sector analysis: The aim is to extract those companies in their respective industries and regions that set an example by excelling at taking responsible actions in terms of environmental protection, social and governance issues. The sector analysis is followed by a fundamental stock analysis with a strong focus on companies with a high sustainability impact.
Comprehensive description of the ESG incorporation strategie for our productline "Sustainable", compare answer LEI 01.2 (above)

We use a combination of all three strategies for our productline "Responsible": In order to define the range of responsible products, the analysts apply a selection of exclusion criteria. The application of the exclusion criteria is followed by a sector analysis: The aim is to extract the worst companies in their respective industries and regions. The sector analysis is followed by a fundamental stock analysis which uses also ESG-data for the stock selection (same process as for for all actively managed equity funds and equity mandates compare LEI_01.2).

 


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

1. Exclusion criteria for all actively managed listed equities (in funds & mandates):

Exclusion producers of controversial weapons:

  • Anti-personnel landmines
  • Biological and chemical weapons
  • Nuclear weapons
  • Small and light arms
  • Munitions and explosives for weapons
  • Cluster bombs and cluster munition

2. Exclusion criteria for sustainable Investments:

2.1 Exclusion criteria for our product-line "Sustainable"

=> Anthropogenic climate change 

  • Companies with coal reserves
  • Extraction of fossil fuels
  • Operation of fossil-fuel power stations
  • Production of cars and aircrafts
  • Airlines 

=> Endangerment of the Earth's atmosphere

  • Production of substances that deplete the ozone layer

=>Loss of biodiversity

  • Not sustainable forestry
  • Not sustainable fishery and fish farming
  • Not sustainable palm-oil plantations
  • Genetic engineering

=> Threat to society and health

  • Nuclear energy
  • Production of arms and war material
  • Production of tobacco and smoking products
  • Production of alcohol (turnover threshold 5%)
  • Gambling (turnover threshold 5%)
  • Child labour (own operations)
  • Pornography

2.3 Exclusion criteria for our product-line "Responsible"

=> Anthropogenic climate change

  • Companies with coal reserves

=>Loss of biodiversity

  • Genetic engineering

=> Threat to society and health

  • Nuclear energy
  • Production of arms and war material
  • Production of tobacco and smoking products
  • Production of alcohol (turnover threshold 5%)
  • Gambling (turnover threshold 5%)
  • Child labour (own operations)
  • Pornography

スクリーニング実行者

説明

For our product-line "Sustainable" we apply a positive/best-in-class screening

The application of the exclusion criteria is followed by a sector analysis: The aim is to extract those companies in their respective industries and regions that set an example by excelling at taking responsible actions in terms of environmental protection, social and governance issues. The selection of is based on a multi-step process. The quantitative analysis compares roughly 50 environmental, social and corporate governance indicators. The data is obtained from specialized providers (such as Asset4, Trucost, MSCI ESG Research & Governance Metrics or RepRisk). Then, we carry out a qualitative product and sector analysis, which is mainly built on the know-how, experience and industry-specific knowledge of our analysts.

 

スクリーニング実行者

説明

Our positive screening indictors (product line "Sustainable" and "Responsible") encompass a broad range of different sustainabilty norms (in German):

E:

  • Biodiversitätskonvention (CBD) inkl. Nagoya-Protokoll über den Zugang zu genetischen Ressourcen und gerechten Vorteilsausgleich
  • Cartagena-Protokoll über die biologische Sicherheit
  • International Tropical Timber Agreement (ITTA, 1983)
  • Washingtoner Artenschutzübereinkommen (CITES)
  • Klimarahmenkonvention (UNFCCC) inkl. Kyoto-Protokoll
  • GHG-Protokoll
  • Montrealer Protokoll über Stoffe, die zu einem Abbau der Ozonschicht führen
  • Stockholmer Konvention über langlebige organische Schadstoffe (POP-Übereinkommen)
  • REACH Europäische Chemikalienverordnung
  • OECD-Leitsätze für multinationale Unternehmen
  • UN Global Compact

S: 

  • ILO-Kernarbeitsnormen (u.a. Arbeitsbedingungen, Kinder-, Zwangsarbeit)
  • Menschenrechtsabkommen der UNO (u.a. Freiheits-, Sozialrechte, politische Rechte,Sicherheit, Würde)
  • Genfer Abkommen zu humanitärem Völkerrecht
  • UNO-Abkommen zu konventionellen, geächteten Waffen
  • OECD-Leitsätze für multinationale Unternehmen
  • UN Global Compact

G:

  • Internationale Corporate Governance Network (ICGN)
  • OECD-Grundsätze der Corporate Governance
  • UN-Konvention gegen Korruption
  • Internationale, nationale Strafgesetze
  • OECD-Leitsätze für multinationale Unternehmen
  • UN Global Compact

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。

Screening Criteria are developed by our internal specialized departement (ESG-solutions team) together with external experts and are regularly (at least once a year) revised. Changes are published on our homepage, factsheets and through other channels (e.g. Eurosif Transparency Guidelines).


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。

          Zürcher-Kantonalbank RI Advisory Committee constantly checks whether the securities in the sustainable funds satisfy Zürcher-Kantonalbank's strict sustainability requirements and contributes to the maintenance and promotion
        

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。

05.3. 第三者のESG評価がスクリーニング目的で更新される頻度を示してください。

05.4. 組織のESGスクリーニングを構築するための組織内リサーチを精査する頻度を示してください。

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]

In order to define the range of sustainable thematic investment products, the analysts apply a selection of very stringent exclusion criteria. The ex-ante exclusion criteria make sure that our clients do not invest in companies that contribute to the world’s most serious environmental problems and social risks.

Ex-ante exclusion criteria for companies:

=> Anthropogenic climate change 

  • Companies with coal reserves
  • Extraction of fossil fuels
  • Operation of fossil-fuel power stations
  • Production of cars and aircrafts
  • Airlines 

=> Endangerment of the Earth's atmosphere

  • Production of substances that deplete the ozone layer

=>Loss of biodiversity

  • Not sustainable forestry
  • Not sustainable fishery and fish farming
  • Not sustainable palm-oil plantations
  • Genetic engineering

=> Threat to society and health

  • Nuclear energy
  • Production of arms and war material
  • Production of tobacco and smoking products
  • Production of alcohol (turnover threshold 5%)
  • Gambling (turnover threshold 5%)
  • Child labour (own operations)
  • Pornography

The analysis of exclusion criteria is followed by a fundamental stock analysis with a strong focus on companies with a high "sustainability impact". The following investment opportunities were defined: Energy: Renewable energy, energy efficiency. Sustainable Mobility: Public transport, Individual transport. Knowledge: Education/Research, Interlinking. Health: Access to basic health supply, Preservation of health. Finance: Access to financial services, Financial infrastructure. Resources: Efficient use of water, resource efficiency.

We offer products on single topics (e.g. climate change, water) as well as a multi thematic fund.


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)


Top