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AP2

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.

ESG is integrated into the fixed income portfolio for developed market by investing in green and social bonds. These bonds are evaluted the same way as other bonds. AP2 also follow-up the reporting of green and social bonds.

ESG factors are integrated into the evaluation model used for analysis emerging market fixed-income securities.

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

SSA

See above.

Corporate (non-financial)

Corporate bonds are exluded if the corporation is excluded from AP2's equity investment universe due to breached of international conventions. AP2 divest from corporate bonds emitted by a company that AP2 has assessed as having high financial climate risks.

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
SSA
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]

Divesting bonds emitted by corporations that AP2 has assesed as companies with high financial climate risk.


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
SSA

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.

SSA

AP2 has a strategic allocation to green bonds. Assessment of ESG factors are a part of the investment process. For Green and Social bonds, environmemtal and social issues are reviewed. In the investment model for emerging market securities focus is on social and governance issues.

Corporate (non-financial)

For corporate bonds the focus is on financial climate risk.

13.3. Additional information.[OPTIONAL]


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