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Universities Superannuation Scheme - USS

PRI reporting framework 2018

Export Public Responses

You are in Direct – Private Equity » Pre-investment (selection)


PE 05. Incorporating ESG issues when selecting investments

05.1. デューデリジェンスで組織がプライベートエクイティ投資先を選定する際、通常ESG問題を組み入れているかどうかを記載してください。

05.2. ESG問題をプライベートエクイティ投資の選択に組み入れる際のアプローチを説明してください。

Please see our response under PE01.

05.3. 補足情報 [任意]

PE 06. Types of ESG information considered in investment selection

06.1. プライベートエクイティの投資選択プロセスにおいて組織が通常どのような種類のESG情報を考慮するかを記載してください。

          The Scheme may appoint specialist consultants to review ESG matters relating to a deal.

06.2. 投資委員会または類似の委員会において、この情報がどのように報告・検討・文書にまとめられているかを記載して下さい。

The EDD process feeds into the investment decision making process.  The process seeks to identify what ESG risks exist, how they are being mitigated, and then rank whether the residual risk remains high, medium or low.  The risks and mitigating factors are presented at a deal close out meeting and highlighted in the Private Markets Investment Committee (PMIC) Investment Memo, upon which the final investment decision is taken.

Re PE6.1

The nature of direct and co-investments, means it is unlikely we would seek or have available data from all the above sources for every deal and the scheme takes a risk based approach appropriate to the deal's timings, origination, expertise and knowledge.

For deals where USS is taking a direct investment, the scheme will appoint specialist external advisors, and consultants to assess ESG issues if these are deemed material for the asset under investigation. Where there are physical assets included in the deal, this typically includes specialist environmental consultants.

PE 07. Encouraging improvements in investees

07.1. ディールストラクチャリングの際、ディール文書または投資後アクションプランにESG関連考慮事項を統合するためのプロセスは何ですか。

          Views on ESG performance and priority actions will feed into asset management plans conveyed to the company through USS's governance at the asset.

07.2. これらの改善の種類を説明し、報告年度において事例がある場合には、その事例を提供してください。

Where we have influence, particularly where we have a board position, and where ESG due diligence or RI reviews highlight shortfalls in ESG management practices, USS will encourage improvements. We may seek to work with fellow investors and/ or management through our roles on the board of investee assets.

During the course of the year, the scheme developed a more systematic ESG performance review process for the largest directly-held assets in the private markets portfolio. This is outlined in PE01. The process will complement ESG-dedicated face to face meetings, and help USS to benchmark performance and prioritise ESG improvements at investee assets.

Where we are investing alongside a GP for a co-investment, we seek to establish the GP's views on ESG risks and performance management pre investment as part of our due diligence processes, and to understand how oversight will be delivered. We may seek assurances regarding the lead investor's plans to manage material ESG risks post investment.

07.3. 補足情報 [任意]

PE 08. ESG issues impact in selection process

08.1. 報告年度において、ESG問題がプライベートエクイティ投資の選択プロセスにどのような影響を及ぼしたかを明示してください。

08.2. 報告年度において、ESG問題がプライベートエクイティ投資に係るディール・ストラクチャリング・プロセスにどのような影響を及ぼしたかを明示してください。

08.3. 補足情報 [任意]