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Pensionfund Metalektro (PME)

PRI reporting framework 2018

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

01.1. Indicate 1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and 2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.

SSA
95 Screening alone
0 Thematic alone
0 Integration alone
5 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
75 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
25 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

SSA: We use negative screening based on UN PRI principals and European sovereign bonds investments we rank the countries by looking at several governance indicators. Only the top 25% ranking countries are eligible for inclusion. We take into account Governance data from the World Bank Worldwide Governance Index.

EMD: We use negative screening based on UN sanctions to provide a minimum level of ESG standards in the portfolio. When we established the investable universe, we do a deep-dive in each country that we are allowed to invest in and we take into account data that covers E, S and G. The analysis done is updated regularly and consists indicators like United Nations Human Development Index, World Bank Worldwide Governance Index, Heritage Index of Economic Freedom, World Bank Ease of Doing Business Index, World Bank Dependency Ratio, MSCI environmental data to analyze countries.

Credits, see FI 01.3

01.3. Additional information [Optional].

Credits; Apart from a company specific ESG paragraph, we construct specific ESG sector reports for sectors which are most sensitive to these factors, such as Utilities, Climate, Energy and Tobacco. In these sector ESG reports, we explain what subsectors/group of companies are preferred from a risk perspective, which serves as an important input factor for our bottom-up company analysis. We use negative screening based on UN PRI principals and on specific ESG risks which we have identified on a sector basis for sectors which are most prone to those risks. We use positive screening in instrument selection (green bonds). Subsequently, we (analyst is in the lead, but portfolio managers are also involved) perform a downside risk analysis which is most important to bondholders. Risks and opportunities with respect to environmental, social and governance issues are explicitly taken into account and fully integrated in our analysis. As it could have impact on credit quality or even threaten the viability of a company's business model. Thematic is used when all companies within a sector are heavely exposed to a certain trend and therefore the risk is more systemic.


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

specify description

          Discuss with other asset managers key ESG challenges/how to leverage our combined knowledge; - organize and participate in internal Education sessions regarding specific ESG themes.
        

03.2. Describe how your ESG information or analysis is shared among your investment team.

          We keep track of our ESG activities, discuss the progress on climate issues from the cross-asset Climate Task Force. Furthermore, ESG is regularly discussed
        

03.3. Additional information. [Optional]


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