At NN IP, we consider it of great benefits to have access to a broad range of relevant ESG data providers. We source ESG information from several data providers, for example, Sustainalytics, MSCI, ISS, Refinitiv and Bloomberg, amongst others. These provide a solid starting position for our screening.
We analyse the available data and incorporate it into our investment analysis and decision-making process (including screening and engagement). This is performed by the investment teams themselves supported by an in-house Responsible Investment team, which acts as a knowledge centre to all asset strategies across NN IP and consists of 4 professionals (as per December 2018). Potential restrictions applicable to our eligible investment universe are being regularly discussed and decided on in the ESG Committee which is chaired by our the CIO.
Furthermore, NN IP stays close to relevant academic research that helps us to better understand ESG risks and opportunities and thereby create better outcomes for our clients. To that end, we started a cooperation in 2014 with the European Center for Corporate Engagement (ECCE), part of the Maastricht University Business School, The Netherlands. As a focus of this partnership, ECCE conducts research on the materiality of ESG factors for investment returns in equity markets. We likewise have an academic cooperation with Yale University on the subject of ESG in equity investment portfolios.
In addition, NN IP is encouraging companies to publish integrated annual reports, combining financial and (non-financial) ESG information and metrics in a clear, consistent format that elaborates on opportunity and risk aspects of these data with regards to their strategy, operations and results.