HQ Trust's RFPs for listed equity managers contain a separate section dedicated to responsible investment activities. There is a catalogue of questions to be answered by the managers regarding PRI signatory, SRI/ ESG strategy/ philosophy, etc. Managers are requested to provide us with their ESG framework if in place. We ask for ESG guidelines and policies showing us how managers take into account ESG issues in the analysis, investment decision and monitoring process.
Considering managers in the selection process means also verifying our ESG standards to be met by the manager. HQ Trust focusses on the ESG score of the fund. Determining ESG score we use data of external data providers.
The monitoring process includes manager meetings and update calls. We monitor the ESG score on a regular basis and check if our ESG goals are still met.
The selection/ appointment/ monitoring process for private equity managers is partially conducted by HQ Capital, a global asset manager focused exclusively on private equity within the HQ Group. HQ Capital is a PRI signatory since 2011. During the investment due diligence process HQ Capital addresses ESG related questions and information by the GP ESG questionnaire. The monitoring process includes manager meetings and update calls.