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Universities Superannuation Scheme - USS

PRI reporting framework 2018

Export Public Responses

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (C) Implementation: Integration of ESG issues

C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. 投資分析の一部として体系的に調査するESG要因と、この分析の影響を受けるアクティブ戦略の上場株式ポートフォリオの割合を記載してください。






Corporate Governance


08.2. 補足情報 [任意]

The materiality of ESG factors varies between sectors.  USS aims to research all factors that could have a material impact on the performance of a company and share price.   This analysis is recorded on our RI Perspectives Report and is provided to the fund manager for discussion.  The RI team also analyses thematic issues in collaboration with colleagues in the equities team, and external organisations such as GIGN, ACGA and the Investor Forum.  

We take our stewardship responsibilities seriously and not all of the issues we analyse and spend time on are demonstrably material in financial terms over the short-term.  For example some of the issues we analyse and engage upon relate to reputational risk which is hard to quantify.   

This does not mean that they are not important: we will engage on long term issues even if they are not regarded as quantifiable at the time of the investment decisions.  See the LEA stewardship section for more details.  We believe that this multi-strategy approach to the management of ESG issues is in the best interest of our members.


LEI 09. Processes to ensure integration is based on robust analysis

09.1. ESG統合が徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを記載してください。

09.2. 組織の統合戦略の一環で包括的ESG調査の対象になるアクティブ運用上場株式の割合を記載してください。

09.3. ESG統合戦略に使われる第三者のESG評価が更新される頻度を示してください。

09.4. ESG統合戦略に使われる組織内調査を見直す頻度を示してください。

          We discuss ESG issues with companies as appropriate.  Our ESG research provider affords companies an opportunity to correct factual errors in their reports.

09.5. ポートフォリオマネージャーがどのようにESG情報を保管・使用しているかについて説明してください。

09.6. 補足情報 [任意]

Note on LEI 9.4: The ESG ratings reviewed by portfolio managers are refreshed on a real time basis, via an automated data feed from our research provider to our Bloomberg terminals. When a score changes the Bloomberg terminal is updated the next day. 

A research note outlining the investment case is completed by a portfolio manager for every active position in the USS Equity Portfolio.  CG scores and the environmental and social scores are automatically embedded in the template of this document.   In addition the RI team completes a report (“RI Perspective”) outlining the material ESG risks and opportunities that are relevant to the company.  We are working through our active equity portfolio to ensure that every company in the portfolio has a corresponding RI perspective.

MSCI ESG ratings are formally reviewed annually however the governance scoring process which is fully dynamic and applied consistently to all companies is updated quarterly or more frequently.   If the Corporate Governance score changes significantly this will trigger an off-cycle analyst review and may result in the change in the ESG rating.   Major controversies may also trigger off cycle ratings reviews.  USS also has access to the MSCI controversy reports which are updated dynamically


LEI 10. Aspects of analysis ESG information is integrated into


10.1. 投資分析のどの側面にESG情報を統合しているかを記載してください。






10.2b. ESG情報を適正価値/ファンダメンタル分析および/またはポートフォリオの構築へと統合するプロセスについて、組織でのプロセスの一部となっている手法を選択してください。

10.4b. 利益予想/バリュエーションツールの修正に使用した手法を説明してください。

We review our portfolio for material ESG issues and where such issues are identified as potentially financially material an adjustment is made to the portfolio manager’s valuation.  Each desk has its own investment process, so the integration method varies between desk, sector and company depending on the conviction underlying the investment case and any assumptions made. The approach to integration taken by a portfolio manager will also depend on the nature of ESG risk identified and the time horizon over which the risk is expected to crystallise.

10.5. 補足情報 [任意]

The RI team sits alongside the investment teams at USS Investment Management, and as documented throughout our response to the PRI report, RI matters are routinely considered within investment processes. RI participates in internal investment meetings and external engagement meetings alongside the investment teams. RI notes on macro themes are shared with Portfolio Teams when appropriate. Portfolio managers have access to quantitative ESG scores via their Bloomberg Terminals and RI information is available through the company Tear Sheets and RI Perspective Reports.  We also consider portfolio and company level ESG risks through dedicated RI portfolio review meetings.