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Public Sector Pension Investment Board

PRI reporting framework 2018

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Process

Process for engagements run internally

LEA 03. Process for identifying and prioritising engagement activities

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

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagement activities carried out by internal staff.

03.2. Describe the criteria used to identify and prioritise engagement activities carried out by internal staff.

other description

          Portfolio managers may identify engagement priorities based on their portfolio strategies.
        

03.3. Additional information. [Optional]

PSP Investments' engagement strategy and approach is described in our Responsible Investment Policy.

Public companies are selected for engagement based on a process that takes into account such factors as ability to create shareholder value, prospects for successful engagement and relevance of ESG issues. Many of our engagements are triggered because companies have not provided sufficient information in their disclosures to fully inform our assessment of the quality of their governance practices, including the exposure to and management of environmental and social factors. We may choose to engage with companies directly, through service providers, or collaboratively with other investors. If we conduct individual engagements, our preference is to do so privately. The intensity of our engagements varies depending on the issues at stake. Some engagements entail one or two meetings over several months; others are more complex and warrant multiple meetings with board members and senior management over several years. We establish our engagement objectives based on issues for which we believe behavioural changes are warranted. Often, multiple ESG factors need to be addressed within a given company. Each of them may require varying approaches and levels of engagement, as well as different contact points.


LEA 04. Objectives for engagement activities

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

04.1. Indicate if you define specific objectives for your engagement activities.

04.2. Indicate if you monitor the actions that companies take during and following your engagements activities carried out by internal staff.

04.3. Indicate if you do any of the following to monitor and evaluate the progress of your engagement activities carried out by internal staff.

04.4. Additional information. [Optional]

We will review the responses received and monitor public disclosure of public companies following engagement to identify improvements or changes in practice.  If we are not satisfied with the measures taken, we will determine next steps which can include follow-up meetings, voting against management’s proposals at the next shareholders’ meeting and reassessing the investment strategy.  


Process for engagements conducted via collaborations

LEA 05. Process for identifying and prioritising collaborative engagement

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

05.1. Indicate whether your organisation has a formal process for identifying and prioritising collaborative engagements

05.2. Describe the criteria used to identify and prioritise collaborative engagements.

05.3. Additional information [Optional]

For PSP Investments, collaborating with peers, service providers and other investors is a way to support robust and vibrant financial markets. Through it collaborative work PSP promotes sound governance practices, meaningful non-financial disclosure, effective boards and companies, and good public policy.


LEA 06. Objectives for engagement activities

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

06.1. Indicate if you define specific objectives for your engagement activities carried out collaboratively.

06.2. Indicate if you monitor the actions companies take during and following your collaborative engagements.

06.3. Indicate if you do any of the following to monitor and evaluate the progress of your collaborative engagement activities.

06.4. Additional information. [Optional]


Process for engagements conducted with/on your behalf by service providers

LEA 07. Role in engagement process

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

07.1. Indicate if you play a role in the engagement process that your service provider conducts on your behalf.

07.2. Indicate the role(s) you play in engagements that your service provider conducts on your behalf.

          Ad hoc monitoring and review of engagements processes.
        

07.3. Additional information. [Optional]

In addition to actively participating in the engagement strategy and process, we actively monitor and review the activities of our service provider through quarterly calls, regular reports and an engagement platform.


LEA 08. Monitor / discuss service provider information

08.1. Do you monitor and review the outcomes of the engagement activities undertaken by your service providers on your behalf?

Please select all that apply

08.2. Additional information. [Optional]

In addition to actively participating in the engagement strategy and process, we actively monitor and review the activities of our service provider through quarterly calls, regular reports and an engagement platform.

When undertaking engagements, a five-step milestone approach is used to guide the engagement process, monitoring and assess the success of the engagements.


General processes for all three groups of engagers

LEA 09. Share insights from engagements with internal/external managers

09.1. Indicate if insights gained from your engagements are shared with your internal or external investment managers.

Type of engagement

Insights shared

Individual/Internal staff engagements

Collaborative engagements

Service provider engagements

09.2. Additional information. [Optional]

Engagement activities and statistics relating to engagements are communicated to the public in PSP Investments’ responsible investment report on an annual basis. Furthermore, depending on the investment strategy and on the identified ESG risks, engagement insights are communicated in a timely manner to portfolio managers for consideration in their investment decisions. In certain instances, internal portfolio managers will review recent and historical proxy voting and engagement activity with a particular issuer as additional input to their investment decisions.


LEA 10. Tracking number of engagements

10.1. Indicate if you track the number of your engagement activities.

Type of engagement
Tracking engagements

Individual / Internal staff engagements

Collaborative engagements

Service provider engagements

10.2. Additional information. [OPTIONAL]


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