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World Bank Group Retirement Benefit Plans

PRI reporting framework 2018

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

          Policy includes engagement and integration
        

other (2) description

          Investment Beliefs
        

01.3. Indicate if the investment policy covers any of the following

Our ESG policy states that the plans are committed to encouraging external managers that manage plans assets to adopt policies and practices that enhance good governance and long -term corporate financial performance

01.4. Describe your organisation’s investment principles and overall investment strategy, and how they consider ESG factors and real economy impact.

The Plan's investment policy outlines the Plan's investment objectives and the framework used in defining the Plan's strategic asset allocation (SAA). Asset volatility risk and downside risk measures are considered key indicators of the Plan's overall investment risk and define the Plan's risk appetite.  The Plan's investments are diversified across a variety of asset classes. Investments within each asset class are further diversified across funds, managers, strategies, geographies, and sectors to limit adverse impact from individual investments.

The Plan's ESG policy aims to integrate ESG factors into the investment decision-making process, to the extent these materially affect the risk-return profile of the Plan's investments. The Plan's oversight committee reviews periodically the Plan's approach to ESG. It currently references engagement in a general way and is focused on collaborative engagement with like-minded investors.

The following set of investment beliefs underpin the Plan's investment policy, among others:

- Investment strategies should be developed based on forward-looking insights.

- Diversification across less correlated risk factors improves portfolio risk-return profile.

- Illiquidity risk is rewarded over the long term.

- Consideration of ESG factors can enhance the investment process through a better understanding of risks and opportunities.

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01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

The Plan has a responsible investment policy in place since 2004. This policy has been regularly reviewed in light of new developments in responsible investing, or as part of regular strategic discussions. More recently, the Plan's oversight committee approved in July 2014 an updated and reinforced policy on ESG integration based on a principled and pragmatic approach in accordance with the fiduciary standard applicable to the administration and investment of Plan assets, and endorsed an investment approach that encompasses an informed consideration of ESG risks and opportunities underlying plan investments, where such issues are material and relevant. Ongoing work is also currently undertaken to enhance the Plan’s approach to engagement and active ownership.

Thus, the Plan's ESG Policy is based on the following principles:

1. It is important for the Plan - as long-term investors and asset owner - to integrate environmental, social and governance (ESG) factors in the overall investment decision-making process.

2. Consideration of ESG factors, including but not limited to environmental practices, worker safety and health standards, and corporate governance, can add value to the Plan's investment process, and can affect the assessment of the risk and return characteristics of investments, even as the relative importance of these factors can vary across asset classes, industry sectors, geography, time, and structure of the investment opportunities.

3. Commitment to encouraging external managers that manage plans assets to adopt policies and practices that enhance good governance and long-term corporate financial performance.

In the context of the objective of seeking the best risk-adjusted returns compatible with its risk profile and in line with the applicable fiduciary standards, staff implement this policy and its underlying principles by, inter alia:

4. Integrating ESG factors into investment and risk analysis.

5. Taking into account ESG factors in due diligence, manager selection, structuring and monitoring of investments and assessment of portfolio risks in asset classes and investments, particularly where such factors are considered likely to be significant, and in keeping with applicable regulatory standards, industry norms and investment best practices.

6. Staying abreast of evolving developments and best practices by engaging with and reaching out to like-minded institutional investors and asset owners, and by collaborating on improved and greater ESG-related disclosures.


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Indicate if your organisation’s investment principles, and overall investment strategy is publicly available

02.4. Additional information [Optional].

Comprehensive information and full documentation on the Plan's Investment Policy, Investment Beliefs and ESG Policy is available to beneficiaries through a secure website. This interface allows beneficiaries to access all information and documents on the Plan's governance, investments, funding, pension benefits and annual reports.Summary information of relevant elements of these policies have been made available to the wider public online via the link provided above. This information may be expanded in the future as further relevant information is collected and compiled for public reference through the implementation of the Plan's responsible investment and ESG policy.

In addition, we actively participate in various investment forums, disclose and promote our investment beliefs during our engagement with other pension plans and asset owners, including through advisory activities undertaken by the Plan's sponsor.


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

We follow the following policy, guidelines and trainings for managing potential conflict of interest :

- Internal staff rule which specifically covers how to avoid and manage conflict of interest.

- Annual financial disclosure policy for staff over a certain grade level.

- Mandatory ethics training.

- Follow the CFA institute code of ethics.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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