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Universities Superannuation Scheme - USS

PRI reporting framework 2018

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目的および戦略

SG 05. RI goals and objectives

05.1. 組織が責任投資活動に関して目的を設定して見直しを行っているかどうか、および、行っている場合にはその頻度を記載してください。

05.2. Additional information. [Optional]

The Responsible Investment team has objectives set at the beginning of the year. The objectives can be updated during the year to take account of a changing investment environment and respond if particular issues arise.   Performance against these objectives is assessed on a biannual basis.  The objectives are aligned to the USS investment strategy. Strategic objectives form part of the appraisal process and reporting to the scheme's investment committee and board. The strategic objectives for USS Investment Management as a whole have in recent years included specific ESG KPIs which the fund is measured against: failure to achieve these KPIs impacts the performance of USS Investment Management as a whole, as well as the RI team.  

The broad objectives and RI strategy are disclosed on our web-site at: https://www.uss.co.uk/how-uss-invests/responsible-investment/approach

The RI strategy has been in place for a number of years and covers all asset classes, in all markets in which the scheme invests, whether those assets are internally or externally managed by the scheme. The following are the scheme's core areas of RI activity:

  • Integration: we seek to include material environmental, ethical social and corporate governance (ESG) considerations within the investment decision making processes, where there is a financial bearing.
  • Engagement, voting and stewardship: fulfilling our obligations as an active owner and using our influence as a major institutional investor to promote good ESG practices.
  • Market transformation activities: including engagement with policy makers and regulators in markets in which we invest, to articulate the concerns of asset owners and long-term investors.

SG 06. Main goals/objectives this year

06.1. 報告年度に組織として設定している責任投資の主な目的を挙げてください。

責任投資プロセス

主要パフォーマンス指標(KPI)

          Improved trustee directors' understanding on the scheme's approach to ESG integration
        

進捗状況

The RI team carried out a specific RI training for the trustee board on RI issues during the year.

The training covered issues such as the RI strategy, climate change, and fiduciary duty. Specific examples or case studies of RI stewardship, voting and ESG integration across asset classes were discussed.

主要パフォーマンス指標(KPI)

          Improved trustee directors' understanding on the scheme's approach to engagement
        

進捗状況

Please see above text on ESG integration.

主要パフォーマンス指標(KPI)

          "Views from USS" commenced publication, with regular contributions on RI matters to be included.
        

進捗状況

The Co-Heads of RI contributed to the development of a series of articles entitled "Views from USS" for an internal and external audience. The posts provide insights and commentary on current and emerging pension topics, written by staff at USS and USS Investment Management Ltd.

"USS's approach to responsible investment" was published in January 2018 and communicated to staff within USS.

See https://www.uss.co.uk/how-uss-is-run/views-from-uss.

          To implement new voting policy on UK remuneration and board appointments
        

主要パフォーマンス指標(KPI)

          Voting policy published, communicated to companies and actioned
        

進捗状況

  • New UK voting policy proposed and signed off by the board Q4 2016.
  • Key changes to UK Vote Policy on approach to remuneration votes, capital authorities, environmental and social matters.
  • Commentary on above issues added to engagement letters in 2016 to prepare portfolio companies ahead of the formal vote policy change.
  • Formal policy change communicated to Chairman and Company Secretary's at UK portfolio companies in Q1 2017, following board approval.
  • Voting policy implemented for 2017 proxy season.
  • USS's Co-Head of RI commented in FT regarding USS's 'more robust' approach to voting on executive pay proposals in article "UK pension funds threaten revolt over executive pay". See https://www.ft.com/content/b2c7b948-d737-11e6-944b-e7eb37a6aa8e.

 

 

その他(具体的に記載してください)(2)

          To identify engagement priorities for listed equities more effectively and to track impact against objectives
        

主要パフォーマンス指標(KPI)

          Ability to prioritise engagement and monitor engagement progress
        

進捗状況

The prioritisation framework for engagement was enhanced.

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

 

 

その他(具体的に記載してください)(3)

          To roll out the environmental / social (E/S) proactive voting template and process to additional markets including USA and Canada.
        

主要パフォーマンス指標(KPI)

          E/S voting undertaken for agreed markets
        

進捗状況

E/S voting process rolled out to three new markets - USA, Canada and Ireland. See LEA 18.2 for more details.

投資に係る財務業績

主要パフォーマンス指標(KPI)

          Improve the Energy Performance Certificate (EPC) ratings across the direct Property portfolio.
        

進捗状況

We now have fewer poorly rated EPCs across the portfolio.  Furthermore this is part of an ongoing programme to improve the quality of the EPC grades which in turn on disposal will make the asset more attractive and increase its saleability.

その他(具体的に記載してください)(1)

          To respond promptly / efficiently to requests for advice and analysis from Portfolio Managers prior to investments being made – utilising variety of service providers as appropriate.
        

主要パフォーマンス指標(KPI)

          PMs provided with appropriate ESG data and RI Perspectives to integrate into their investment analysis and decision making processes.
        

進捗状況

Internal systems developed to ensure that corporate governance, environmental / social issues and in-house RI team perspectives are conveyed to portfolio managers in a coordinated manner.  

Positive feedback from portfolio managers on the data received.  

投資のESG特性

その他(具体的に記載してください)(1)

          To work with Quant Team to assess the possibility of tilting the Low Volatility Factor Fund away from high carbon assets
        

主要パフォーマンス指標(KPI)

          Lower carbon footprint for Low Vol fund.
        

進捗状況

Worked with internal Quant Team and our carbon data provider on back-testing to assess the potential financial performance implications of tilting the fund away from higher carbon assets. 

Backtesting completed and process for change agreed, with full implementation planned for 2018.  

その他(具体的に記載してください)(2)

          Monitor DC external managers to ensure compliance with USS RI expectations
        

主要パフォーマンス指標(KPI)

          Process for monitoring DC asset managers developed and implemented.
        

進捗状況

USS external public markets manager assessment process adapted to enable roll-out to a higher number of managers.  

Assessment of DC managers commenced with continued roll-out in 2018.  

 

 

その他の活動

その他(具体的に記載してください)(1)

          Develop a process to enhance the ESG standards of existing direct assets by working with internal Private Markets Group to enhance their asset management framework
        

主要パフォーマンス指標(KPI)

          Process for assessing ESG management at direct assets developed and agreed with PMG, and then implemented
        

進捗状況

The Private Markets Group and RI teams worked together to develop a new process to more systematically review ESG management of the scheme's direct assets.

For corporate governance the IFC corporate governance framework has been adapted for internal use. On environmental and social matters, the scheme adopted the GRESB infrastructure process to help monitor and benchmark environmental and social performance indicators. The results of face to face monitoring meetings on ESG matters are also fed into an assessment.

The process enables the assessment and comparability of the current status of ESG management of USS' assets, and working with PMG, the RI team makes recommendations for improvements to the managers of the assets.

The review process was undertaken at one asset in 2017 with further reviews planned for 2018. The process will continue to be enhanced to reflect experience, feedback and the lessons learned from within the USS and asset-based teams involved such reviews.

 

06.2. 補足情報 [任意]


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