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Universities Superannuation Scheme - USS

PRI reporting framework 2018

Export Public Responses

You are in Direct - Listed Equity Active Ownership » Engagement » Process » Process for engagements run internally


LEA 03. Process for identifying and prioritising engagement activities


03.1. 貴社内のスタッフが実行するエンゲージメント活動を特定し、優先順位を決定する正式なプロセスが貴社にあるかどうか示してください。

03.2. 貴社内のスタッフが実行するエンゲージメントを特定し、優先順位を決定する際に使用する基準を説明してください。

03.3. Additional information. [Optional]

USS Investment Management manages the assets of the USS Pension Scheme, so we do not have a diverse institutional client base with a diverse set of investment mandates and associated  ESG requirements to implement.   ESG’s risks differ across different industries so our engagement approach varies from industry to industry.  However, we consider that each industry in which we invest faces material ESG risks of one form or another.

The USS prioritisation framework for engagement was enhanced during the year. A spreadsheet was developed to identify portfolio companies where the scheme's active portfolio holding triggered any of the following criteria:

  • USS a top 20 shareholder
  • USS ownership above 3% issued share capital
  • Company on external collaborative engagement focus lists e.g. Climate Action 100+, Workforce Disclosure Initiative or a human rights watch list
  • Company is a focus of internal engagement with the portfolio managers
  • Company is a significant portfolio over-weight

This framework acts as guide, our approach to identifying engagement priorities is not rigid.  Each individual engagement is considered on its own merits.

We utilise lessons learned from previous ESG controversies in our engagement, both recent and more dated events.  For example Macondo, Rana Plaza and more recently 

Samarco and Wells Fargo are events that all elicited conversations with companies in our portfolio. Following Samarco we asked all the integrated mining companies in our portfolio about their tailings management processes and about what additional measures they had taken post the disaster.

Engagement has also been prompted by NGO research for example the Viscose Report produced by Changing Markets.

Whilst we are aware that corporations in some jurisdictions are more receptive to investor engagement, we are conscious of the need to encourage transparency in markets where investor engagement is less mature.   We vote at all our global holdings and send a letter explaining the rationale behind our votes to all our actively held companies, regardless of their size, index or country of incorporation.

LEA 04. Objectives for engagement activities


04.1. 貴社内のスタッフが実行する貴社のエンゲージメント活動に具体的な目的を定義しているかどうかを記載してください。

04.2. 貴社内のスタッフが実行する貴社のエンゲージメントを受けた企業の行動をエンゲージメント中および後で監視しているかどうかを記載してください。

04.3. 貴社内のスタッフが行うエンゲージメント活動の進捗を監視のうえ評価するために以下のいずれかを実施しているかどうか示してください。


          We maintain a spreadsheet which records engagement activity and objectives.  Current engagements are reviewed in weekly team meetings.

04.4. Additional information. [Optional]

We do not have a formal process in place for monitoring or reviewing progress against engagement objectives, but this is something that naturally happens as part of the engagement process and team meetings.   Thorough preparation is undertaken ahead of every engagement and detailed notes are taken during the meeting with conclusions and next steps.  Meeting notes are shared with fund managers (in many cases they also participate in the meeting) via our internal research system hosted on Bloomberg.    

Some engagement meetings are initiated by the companies in our portfolio, and we welcome this proactive approach.  However for these meetings we would not necessarily have a firm objective. Meetings are also arranged to further our understanding of a company’s business model and the risks they face.  As stewards we need to be comfortable with how our portfolio firms manage risks.  Our PM’s meet with companies on a regular basis to discuss strategy and many cases this naturally involves a discussion of ESG related matters.