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Bank of America Global Wealth and Investment Management

PRI reporting framework 2018

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You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

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
73 %
Percentage of active listed equity to which the strategy is applied
27 %
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.

U.S. Trust:  The social innovation screen seeks to find companies that are best-in-class across the three focus areas within the screening process: environmental stewardship, human capital engagement, and corporate citizenship. We also employ a performance review which is designed to measure how effectively corporations implement the policies and procedures described and evaluated in the previous step, and whether the company capitalizes on external incentives for good corporate behavior. The social innovation screening process may be customized to meet the specific values of clients at the client’s request.

MSG/ MAA:  MAA acts as investment manager for several equity strategies and offers negative screening to clients that have specific themes they would like to restrict from the portfolio. 

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

MSG/MAA:  To negatively screen accounts MAA uses screens from a third party provider, which encompass religious, industry, country, sector, and individual company screens.

Screened by

Description

U.S. Trust:  Screen tests the companies broadly against the key characteristics that are designed to identify corporations that achieve positive social impact through progressive policies believed to be creators of value.

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.

MSG/MAA:  We have a licensing agreement with a third party provider and our clients can leverage any of the available negative screens.  We can accommodate restrictions of up to 30% of an account and prorate cash proceeds of these restrictions across the rest of the model.  We currently don't disclose criteria used in our screens nor are clients informed when the screen is changed.

U.S. Trust:  The Social Innovation screen seeks to find companies that are best-in-class across the three focus areas within the screening process: Environmental Stewardship, Human Capital Engagement, and Corporate Citizenship. We also employ a Performance Review which is designed to measure how effectively corporations implement the policies and procedures described and evaluated in the previous step, and whether the company capitalizes on external incentives for good corporate behavior. We believe the the 400 data points used in the screening process identify companies that are having positive social impact while simulataneously creating economic advantages for their businesses. The scoring process takes place after each quarter-end and the portfolios are adjusted accordingly. Given U.S. Trust's discretionary approach, changes are implemented and clients may speak with their portfolio managers to be made aware of any changes in a client's portfolio. 


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.

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

05.5. Additional information. [Optional]

MSG/MAA:  Box 2 above is checked with respect to MAA activities.

U.S. Trust:  Boxes 1, 3, 5, and 6 are checked with respect to US Trust Activities.


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


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

MSG/MAA:  To the extent that a client requests a thematic ESG mandate, MAA can implement through screening capabilities from a third party data provider.

U.S. Trust:  The Social Innovation screen seeks to find companies that are best-in-class across the three focus areas within the screening process: Environmental Stewardship, Human Capital Engagement, and Corporate Citizenship. We also employ a Performance Review which is designed to measure how effectively corporations implement the policies and procedures described and evaluated in the previous step, and whether the company capitalizes on external incentives for good corporate behavior. The Social Innovation screening process may be customized to meet the specific values of clients (Environmentally themed, for example). The process of customization permits changes to the Social Innovation screening process by which specific, client-directed data points are weighted more heavily than other within the screening framework. The Social Innovation screen is only applicable to the U.S. Trust Socially Innovative strategies.


(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]

U.S. Trust: The responses above pertain solely to the U.S. Trust Socially Innovative Investing suite

MSG/MAA:  Not applicable


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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