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UBS Asset Management

PRI reporting framework 2018

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Post-investment (monitoring and active ownership)

Overview

INF 11. ESG issues in post-investment activities

11.1. Indicate whether your organisation and/or operators consider ESG issues in post-investment activities relating to your infrastructure assets.

11.2. Indicate how your organisation, and/or operators, considers ESG issues in the following post-investment activities relating to your infrastructure assets.

11.3. Describe how your organisation, and/or operators, considers ESG issues in post-investment activities related to your infrastructure investments. [Optional]

ESG principles are embedded in our processes when actively managing investments in our portfolio. In our view, delivery against a robust ESG framework reflects good management, delivers lower risk investments, greater community and employee support, and over the long term, stronger financial returns. We assess the ESG credentials of our investee companies by benchmarking their policies, actions and procedures against our ESG objectives. Notably, given the diverse nature of our existing and potential future investments, such criteria consider relevant local, regional and global best practices and the nature of the business, operations, surrounding environment and community in which the investee company operates. Key categories reviewed include:

(1) Environmental: Climate change, Environmental management systems and compliance, Environmental efficiency (waste, water, energy), Emissions;

(2) Social: Workplace Health and Safety, Human capital management, Corporate conduct, Stakeholder management, community relations; and

(3) Governance: protection / exercise of shareholders' rights, engagement and co-operation with stakeholders, disclosure

Although each investment company we own is different, ESG considerations are typically reviewed and discussed during quarterly board meetings.


Infrastructure monitoring and operations

INF 12. Proportion of assets with ESG performance targets

12.1. Indicate the proportion of infrastructure assets for which your organisation and/or operators included ESG performance in investment monitoring during the reporting year.

 (in terms of number of infrastructure assets)

12.2. Indicate ESG issues for which your organisation, and/or operators, typically sets and monitors targets (KPIs or similar) and provide examples per issue.

List up to three example targets per issue

          Energy efficiency
        
          Water usage
        
          Waste efficiency
        

List up to three example targets per issue

          Workplace health and safety
        
          Human capital management
        
          
        

List up to three example targets per issue

          Protection / exercise of shareholders' rights
        
          Engagement and cooperation with stakeholders
        
          Timely / accurate disclosure
        

12.3. Additional information. [Optional]

We have board seats (or equivalent) for all the infrastructure companies we own a stake in. We regularly review and monitor ESG issues with management.


INF 13. Proportion of portfolio companies with ESG/sustainability policy

13.1. Indicate whether you track the proportion of your infrastructure investees that have an ESG/sustainability-related policy (or similar guidelines).

13.2. Indicate the proportion of your infrastructure investees that have an ESG/sustainability-related policy (or similar guidelines).

(in terms of number of infrastructure investees)

13.3. Describe how your organisation, and/or your operators, contribute to the infrastructure investees’ management of ESG issues. [Optional]

In instances where we are responsible for the development and formation of a new project or company, we will have direct responsibility for the establishment of corporate and procurement policies which have a direct impact on the management of ESG issues. In instances where we acquire an existing business with an existing operating structure, we ensure that the corporate policies of the investee company are in accord with our fund policies or we update the policy as needed. We maintain oversight of all our investments through board appointments and participation in management working groups through which we are able to oversee management compliance with such policies.


INF 14. Type and frequency of reports received from investees (Private)


Infrastructure maintenance

INF 15. Proportion of maintenance projects where ESG issues were considered

15.1. Indicate the proportion of active infrastructure maintenance projects where ESG issues have been considered.

(in terms of number of active maintenance projects)

15.2. Describe your approach to ESG considerations for infrastructure maintenance projects. [Optional]

We ensure that the corporate policies of the investee company are in accord with our Fund policies. We maintain oversight of all our investments through board appointments and participation in management working groups through which we are able to oversee management compliance with such policies when maintaining our infrastructure assets.


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