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BBVA Fondo de Empleo

PRI reporting framework 2019

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Asset class implementation gateway indicators

OO 10. Active ownership practices for listed assets

10.1. Select the active ownership activities your organisation implemented in the reporting year.

Listed equity – engagement

10.2. Indicate why you do not engage and do not require external managers to engage.

OO 10.1 - Listed equity – engagement

Regarding to this process, the Control Committe is analysing the option to request our external manager to engage with companies on ESG issues on our behalf.

We have required our external manager to incorporate ESG in the Pension Fund's investments and manage the Responsible Investment of the Pension Fund.

 


OO 10.1 - Listed equity – voting

Regarding to the voting rights, the Control Committe delegates voting rights on our asset manager whenever the general shareholders meeting offers an attendance premium.

Listed equity – voting

Fixed income SSA – engagement

Fixed income Corporate (financial) – engagement

Fixed income Corporate (non-financial) – engagement


OO 11. ESG incorporation practices for all assets

Select the externally managed assets classes in which you and/or your investment consultants address ESG incorporation in your external manager selection, appointment and/or monitoring processes.
Asset class
ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes
Listed equity

Listed equity - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Fixed income - SSA

Fixed income - SSA - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Fixed income - corporate (financial)

Fixed income - corporate (financial) - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Fixed income - corporate (non-financial)

Fixed income - corporate (non-financial) - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Private equity

Private equity - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Property

Property - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Infrastructure

Infrastructure - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Hedge funds

Hedge funds - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Cash

Cash - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Other (1)

Other (1) - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

11.3b. If your organisation does not integrate ESG factors into investment decisions on your externally managed assets, explain why not.

Does not incorporate ESG factors in selecting cash investments, because cash is mainly used for short term payments to beneficiaries.

11.4. Provide a brief description of how your organisation includes responsible investment considerations in your investment manager selection, appointment and monitoring processes.

Pension Fund's Investment Policy:

The investment policy applied to the total assets of the Fund, as well as the investment analysis and decision-making processes, incorporate the criteria of "Socially Responsible Investment". The objective is both to improve the risk-return of investments and to fulfill the social responsibility of the Pension Fund. All European fixed income (SSA) and Listed Equity are subject to this double analysis of financing and SRI criteria.

For the implementation of the SRI policy, our asset manager contracts the services of an external provider, MSCI, who provide it with the analysis of the individual investments as well as a series of indicators (ESG ratings) that allow it to assess the SRI risks of companies in the portfolio.

We have included a brief description of our asset manager`s investment policy in the following section.

 

Gestion de Previsión y Pensiones, E.G.F.P., S.A.'s (GPP) policy is based on four main pillars:

Integration of ESG issues in the investment process: The integration of ESG issues in the investment process is coherent with our fiduciary duty to protect our clients interests. Thus, GPP has considered the previous approach in its strategic investment process for all the Pension Funds under management in order to improve the risk return profile of the investments, accomplishing at the same time with the social responsability goals inherent to Pension Funds. We are analysing the major European sectors and governments, using third party research, in order to be able to identify the relevant issues from ESG perspective and ranking companies and governments according to their credentials.

Rules of Conduct in Defence: The BBVA Defense Rule applies to all units and subsidiaries of the BBVA Group Worldwide and to all financial services. For the purposes of this policy, BBVA uses exclusion lists of companies and countries, prepared and regularly updated with the help of independent experts.

Proxy Voting: In both Spanish and European companies for the listed equity managed in our portfolios.

Engagement: Through our participation in associations different associations who aims to promote changes in the investment process and the investment community, such as governments, businesses and the public in general. Additionally, GPP has engaged with companies to motivate them to make more flexible the process of Proxy Voting through electronic ways, or for requiring them further information related to the AGM's to which we attend under our clients' delegation.

 

Monitoring processes:

For the implementation of the SRI policy, our asset manager contracts the services of an external provider, MSCI, who provide it with the analysis of the individual investments as well as a series of indicators (ESG ratings) that allow it to assess the SRI risks of companies in the portfolio.

The Control Commitee requests clarification from the asset manager when doubts arises regarding any investment.

In addition, we have applied the monitoring processes in accordance with the annual report by Sustainalytics, that includes the environmental, social and governance (ESG) analysis of our Pension Fund.

Finally, our asset manager annually publishes the management report of the Pension Fund together with the audit report of annual accounts which itself includes the conclusions of the Sustainalytics report.


OO 12. Modules and sections required to complete

12.1. Below are all applicable modules or sections you may report on. Those which are mandatory to report (asset classes representing 10% or more of your AUM) are already ticked and read-only. Those which are voluntary to report on can be opted into by ticking the box.

Core modules

RI implementation via external managers

Indirect - Selection, Appointment and Monitoring of External Managers

Closing module

12.2. Additional information. [Optional]

 

 


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