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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 » 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
100 Screening alone
0 Thematic alone
0 Integration alone
0 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
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 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.

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. Finally, 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 countries or issuers that are restricted will be blocked (negative/exclusionary screening) on the trading platform.

01.3. Additional information [Optional].


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:

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

03.3. Additional information. [Optional]

PSP Investments ensures that the screening of countries and issuers is based on 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 the research undertaken and provided is also carried out.


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