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Public Sector Pension Investment Board

PRI reporting framework 2018

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (C) Implementation: Integration

(C) Implementation: Integration

FI 11. Integration overview

11.1. Describe your approach to integrating ESG into traditional financial analysis.

As part of its investment process for internally managed fixed income securities, PSP Investments looks to identify and consider any material risks, which would include ESG material risks. In particular, we consider whether all  risks including ESG, are appropriately reflected in the pricing of fixed income securities of corporate issuers. The materiality of all factors including ESG factors is assessed based on the sector, region, timescale and leverage of the issuer. This approach offers the required flexibility to take under consideration the ESG risks that are relevant and material to a company’s financial performance and, ultimately, credit worthiness and valuation.  We also engage with corporate issuers in respect to ESG issues.

11.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

Corporate (financial)

As part of its investment process for internally managed fixed income securities, PSP Investments looks to identify and consider any material risks, which would include ESG material risks. In particular, we consider whether all  risks including ESG, are appropriately reflected in the pricing of fixed income securities of corporate issuers. The materiality of all factors including ESG factors is assessed based on the sector, region, timescale and leverage of the issuer. This approach offers the required flexibility to take under consideration the ESG risks that are relevant and material to a company’s financial performance and, ultimately, credit worthiness and valuation. We also engage with corporate issuers in respect to ESG issues.

Corporate (non-financial)

As part of its investment process for internally managed fixed income securities, PSP Investments looks to identify and consider any material risks, which would include ESG material risks. In particular, we consider whether all  risks including ESG, are appropriately reflected in the pricing of fixed income securities of corporate issuers. The materiality of all factors including ESG factors is assessed based on the sector, region, timescale and leverage of the issuer. This approach offers the required flexibility to take under consideration the ESG risks that are relevant and material to a company’s financial performance and, ultimately, credit worthiness and valuation. We also engage with corporate issuers in respect to ESG issues.

11.3. Additional information [OPTIONAL]


FI 12. Integration - ESG information in investment processes

12.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
Corporate (financial)
Corporate (non-financial)
ESG analysis is integrated into fundamental analysis
ESG analysis is integrated into security weighting decisions
ESG analysis is integrated into portfolio construction decisions
ESG analysis is a standard part of internal credit ratings or assessment
ESG analysis for issuers is a standard agenda item at investment committee meetings
ESG analysis is regularly featured in internal research notes or similar
ESG analysis is a standard feature of ongoing portfolio monitoring
ESG analysis features in all internal issuer summaries or similar documents
Other, specify

12.2. Additional information [OPTIONAL]


FI 13. Integration - E,S and G issues reviewed

13.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Environment
Social
Governance
Corporate (financial)

Environmental

Social

Governance

Corporate (non-financial)

Environmental

Social

Governance

13.2. Please provide more detail on how you review E, S and G factors in your integration process.

Corporate (financial)

As part of its investment process for internally managed fixed income securities, PSP Investments looks to identify and consider any material risks, which would include ESG material risks. In particular, we consider whether all  risks including ESG, are appropriately reflected in the pricing of fixed income securities of corporate issuers. The materiality of all factors including ESG factors is assessed based on the sector, region, timescale and leverage of the issuer. This approach offers the required flexibility to take under consideration the ESG risks that are relevant and material to a company’s financial performance and, ultimately, credit worthiness and valuation. We also engage with corporate issuers in respect to ESG issues on occasion.

Corporate (non-financial)

As part of its investment process for internally managed fixed income securities, PSP Investments looks to identify and consider any material risks, which would include ESG material risks. In particular, we consider whether all  risks including ESG, are appropriately reflected in the pricing of fixed income securities of corporate issuers. The materiality of all factors including ESG factors is assessed based on the sector, region, timescale and leverage of the issuer. This approach offers the required flexibility to take under consideration the ESG risks that are relevant and material to a company’s financial performance and, ultimately, credit worthiness and valuation.  We also engage with corporate issuers in respect to ESG issues on occasion.

13.3. Additional information.[OPTIONAL]


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