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Public Sector Pension Investment Board

PRI reporting framework 2018

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Implementation processes

LEI 01. Percentage of each incorporation strategy

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

01.1. Indicate (1) which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities and (2) the breakdown of your actively managed listed equities by strategy or combination of strategies (+/- 5%)

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied
100 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to incorporation and the reasons for choosing the particular ESG incorporation strategy/strategies.

PSP Investments has adopted processes and activities in order to integrate ESG factors into the investment process. When making investment decisions within public and private asset classes, PSP Investments assesses a broad range of financial and ESG factors that may have an impact on a company’s competitiveness, risk profile, resilience and, ultimately, long-term viability. In analyzing the risks and opportunities inherent to any investment, PSP Investments looks to identify, monitor and mitigate ESG factors that are, or could become material to long-term financial performance. The materiality of ESG factors varies across companies, industries, geography and time. Therefore, the precise approach to integrating these factors into the investment decision-making process will vary by asset class and investment strategy.

Also, PSP Investments is committed to effectively and efficiently implementing legally-binding investment restrictions it is subject to, and any other investment restrictions that may be determined from time to time by the Board of Directors. PSP Investments therefore maintains a list of issuers in which investment is restricted.

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]


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) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

Filter for legally-binding investment restrictions (trade and economic sanctions) and certain controversial weapon manufacturing and related activities.

04.2. Describe how the screening criteria are established, how often the criteria are reviewed and how you notify clients and/or beneficiaries when changes are made.

PSP Investments is committed to effectively and efficiently implementing legally-binding investment restrictions it is subject to, and any other investment restrictions that may be determined from time to time by the Board of Directors.  Currently, the restrictions apply to issuers engaged in activities related to controversial weapons or subject to trade and economic sanctions. Any issuers that are restricted will be blocked (negative/exclusionary screening) on the trading platform.

The investment restrictions are reviewed periodically and changes are communicated throughout the organization.


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]

PSP Investments ensures that the screening of countries and issuers is based on a robust analysis.  With the assistance of service providers, the Responsible Investment Group of PSP Investments undertakes comprehensive research to determine ESG issues.  The research is updated regularly to ensure that portfolio holdings comply with PSP Investments' investment policies.  A periodic review of the quality of research undertaken and provided is also carried out.


LEI 06. Processes to ensure fund criteria are not breached (Private)


(C) Implementation: Integration of ESG issues

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate which ESG factors you systematically research as part of your investment analysis and the proportion of actively managed listed equity portfolios that is impacted by this analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

PSP Investments has adopted processes and activities in order to integrate ESG factors into the investment process. When making investment decisions within public and private asset classes, PSP Investments assesses a broad range of financial and ESG factors that may have an impact on a company’s competitiveness, risk profile, resilience and, ultimately, long-term viability. In analyzing the risks and opportunities inherent to any investment, PSP Investments looks to identify, monitor and mitigate ESG factors that are, or could become material to long-term financial performance. The materiality of ESG factors varies across companies, industries, geography and time. Therefore, the precise approach to integrating these factors into the investment decision-making process will vary by asset class and investment strategy. The level of integration and steps to integrate ESG factors will vary depending on the investment strategy.


LEI 09. Processes to ensure integration is based on robust analysis (Private)


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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