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Martin Currie Investment Management

PRI reporting framework 2018

You are in Strategy and Governance » ESG issues in asset allocation

ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

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

13.1. Indicate if your organisation executes scenario analysis and/or modelling in which the risk profile of future ESG trends at portfolio level is calculated.

Is this scenario analysis based on a 2°C or lower scenario?

13.2. Indicate if your organisation considers ESG issues in strategic asset allocation and/or allocation of assets between sectors or geographic markets.

We do the following

13.3. Additional information. [OPTIONAL]

We are active equity managers. We build concentrated, bottom up equity portfolios for our clients and as such our focus is on company analysis and selection rather than top down asset allocation. ESG factors and their consideration form a key part of our sustainability analysis and we incorporate these factors into our financial modeling during this process - this may include scenario testing but this is focused on the individual companies rather than as a portfolio exercise.

Where climate change is concerned one of the areas of focus for us is how companies themselves are approaching this and what scenarios and modeling they are carrying out.  While we encourage companies to consider a 2 degree pathway we recognise that there is not one set transition pathway and as such we cannot say that we use a 2 degree or lower scenario.  As the scenarios and transition pathways develop and become more established we are likely to increasingly use these.  The Transition Pathway Initiative, for example, provides some useful guidance on this that is made available to the investment team.


SG 14. Long term investment risks and opportunity (Private)

SG 15. Allocation of assets to environmental and social themed areas (Private)