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NN Investment Partners

PRI reporting framework 2019

Export Public Responses

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes


LEI 01. Percentage of each incorporation strategy

01.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
100 %
アクティブ運用している上場株式の合計 105%

01.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

NN IP uses ESG integration across all of its equity assets under management as we strongly believe that incorporation of ESG factors can enhance the risk-return profile of our investments. We also apply negative screening (excluding certain type of business activities such as production and trade of controversial weapons and arms) based on our ethical, societal and business values. We offer specialised Sustainable funds (combining ESG integration and engagement combined with extended positive and negative screening criteria) and tailor-made Responsible Investment solutions to those clients that opt for comprehensive ESG integration.

NN IP introduced a new Impact Equity Investing strategy in 2016, intended to generate a measurable social and environmental impact alongside a financial return. In this thematic investment strategy we use a proprietary database to map an investable universe of stocks on their positive impact exposure. A strongly focused and thematic portfolio of stocks is constructed, based on NN IP's ESG screening and integration approach. We engage with all holdings in the global equity impact portfolio on their impact and related KPIs. We provide companies customized feedback on their impact reporting; and encourage them to report more relevant metrics. Moreover, we share new ideas and best practices.

01.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]

NN IP's objective when managing clients' assets is to enhance long term value. We believe that social, environmental, legal and ethical aspects of business activities have a material impact on company performance. The relevance of ESG factors is consistently used by NN IP by active ownership, excluding certain types of business activities, and by integrating ESG factors in the investment processes. Using both external data providers and in-house proprietary analysis all -mainstream- analysts include ESG aspects in their investment cases. ESG factors are a key aspect of our decisions as to whether or not to invest in companies. Being an active manager we initiate in-depth discussions with companies about controversies and/or gaps in their strategy and policies that are material to their business and used as input for our voting practices. Acting holistically drives thorough ESG integration.


LEI 02. Type of ESG information used in investment decision

02.1. 組織でESG組み入れ戦略に使用しているESG情報およびこの情報の提供者を記載してください。








          Academic ESG Research and insights


02.2. ブローカーに対しESG調査結果を提供するよう奨励しているかどうかについて記載してください。

02.3. ブローカーに対しどのように奨励しているかを記載してください。

The incorporation of ESG research is an important factor in our discussion with brokers whereby it is requested from brokers to have integrated ESG research. As a consequence of the introduction of MiFiD II, NNIP decided to finance the costs of broker research through its own P&L. We went through an intensive selection process based on overall service and specialized contributions. The importance of ESG qualifications has clearly increased in line with our own business strategy and ambitions. We have a deep relationship with several sell-side brokerage firms that provide focussed ESG analysis.

02.4. 補足情報 [任意]

NN IP uses data of various independent external (ESG) data/research providers, amongst others: Sustainalytics, MSCI, ISS, Bloomberg, Refinitiv. In addition, we have a deep relationship with several sell-side brokerage firms that provide focussed ESG analysis. NN IP analyses the data and insights in-house and incorporate it in the investment analysis and decision making process where it applies its proprietary/in-house methodology, supported by academic insights. We have a multi-year academic research cooperation with the European Center for Corporate Engagement (ECCE), part of the Maastricht University Business School, The Netherlands and a cooperation with Yale University. Through this cooperation we have] researched the materiality of ESG factors for investment returns in global developed and emerging equity markets. Clients and stakeholders have responded very positively to our continued initiative for improved visiblity on the attribution of integrating ESG factors for portfolio performance.

LEI 03. Information from engagement and/or voting used in investment decision-making

03.1. ESGへのエンゲージメントや(委任状による)議決権行使から得られる情報を投資の意思決定に利用できるプロセスが組織にあるかどうかを記載してください。

03.2. 補足情報 [任意]

We believe that key to integrating ESG factors into the investment analysis is to determine how impactful material ESG factors are to the company's competitive positioning and to its value creation process.

Based on our engagements with companies, any concerns about a company's ESG principles and practices and the management’s receptiveness to our engagement efforts are highlighted and can impact the analysts' investment recommendation. The implemented engagement database in 2016 keeps track of our company engagement activities and is used and accessible for all investment staff.

NN IP’s dedicated proxy voting committee is tasked with voting on client assets and a separate proxy voting committee responsible for voting on proprietary assets. The committee members have regular discussions with in-house analysts and PMs about potential issues that may trigger a vote against or in favour on specific agenda items. In case our vote is against or in favour on one or more controversial AGM agenda items may have a material impact on either our shareholder position or company's business model, this can possibly be reflected in the investment case.

All votes are publicly disclosed on the NN IP website:

A) 実施:スクリーニング

LEI 04. Types of screening applied

04.1. 組織内でアクティブ運用している上場株式に適用するスクリーニングの種類を記載し、説明してください。




NN IP follows NN’s exclusion list, which includes the involvement in the following activities/products: controversial weapons, arms trade with entities that are subject to arms embargoes, tobacco production



NNIP uses input from Sustainalytics, MSCI, Refinitiv, Bloomberg, ISS and various other ESG data providers, as well as its own analysts, to determine how a company fares on ESG parameters within its sector. This leads to best-in-class companies receiving a high score on the analysts’ scorecards and a corresponding investment recommendation of the analysts towards portfolio managers. NNIP also offers Global and European Sustainable funds as well as an Impact fund, which follow strict positive screening criteria.



NN IP follows NN’s exclusion list, which includes the involvement in the following controversial conducts: companies that severely and systematically violate the UNGC principles and/or the OECD Guidelines. NNIP also uses Sustainalytics controversy categorisations as input for its own Controversy Council to determine whether a company’s conduct violates our norms. If so, we engage with the company and unsuccessful engagement can lead to divestment.

04.2. スクリーニング基準が変更された場合に顧客や受益者に通知する方法について説明してください。

Changes to our list of criteria that we apply negative exclusions to (NN Restriction List) are announced via press releases. Furthermore, our Framework Policy is updated accordingly. Our fund prospectuses and contracts of mandates refer to this Framework Policy. Moreover, clients are also made aware of changes in the conversations with our relationship managers or other representatives of NNIP (i.e. portfolio managers, client portfolio managers). In addition, NNIP’s presentations are updated accordingly and used for clients. As we make changes on the subject after in-depth and well thought-through deliberations, we also seek media attention regarding the changes and use channels like our website to widely publicise them.

LEI 05. Processes to ensure screening is based on robust analysis

05.1. スクリーニング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選択してください。

          We partner with Yale University and the European Centre for Corporate Engagement (ECCE) at Maastricht University to find academically robust ESG input

05.2. ESGスクリーニング戦略の一環で包括的なESG調査の対象となるアクティブ上場株式ポートフォリオの割合を示してください。

05.3. 第三者のESG評価がスクリーニング目的で更新される頻度を示してください。

05.4. 組織のESGスクリーニングを構築するための組織内リサーチを精査する頻度を示してください。

05.5. 補足情報 [任意]

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.

LEI 06. Processes to ensure fund criteria are not breached

06.1. ファンドの基準に違反がないことを確認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。

          KPMG for annual report of NN Group and due diligence of auditors/ employees of our (external) clients and prospects.

06.2. ファンドのスクリーニング基準に対する違反が判明した場合、これらの違反を是正するために従うプロセスを説明してください。

In the unlikely event of a breach, the Restriction Monitoring System will report this and the breach will be investigated. Necessary actions will then be taken to rectify the breach and bring the portfolio back within the restrictions. The classification of the breach is such that it is either an active breach or a passive breach (also dependent on data updates and market movements). Resolution of breaches need to be in line with the relevant client guidelines and restrictions and this is actively monitored, and logged.

06.3. 補足情報 [任意]

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。








08.2. 補足情報 [任意]

At NN IP, we systematically and fully integrate ESG criteria in our investment-decision making process. At the heart, ESG analysis is conducted by our in-house team of equity analysts. We start with raw ESG data as an input from data vendors such as Bloomberg, ISS, MSCI, Refinitiv and Sustainalytics. This feeds into our proprietary ESG assessment framework capturing a company's relative ESG performance. In addition, we make extensive use of sell-side ESG and thematic research from both a topic and industry angle.


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。

09.5. ポートフォリオ・マネージャーがどのようにしてESG情報を保有し、使っているのか説明してください。

09.6. 補足情報 [任意]

At NNIP, detailed ESG information is readily available throughout the organisation. Our analyst systematically incorporate ESG factors in their research processes on companies, and are taking continuous steps to further increase their knowledge. In this there is close cooperation with the Responsible Investment team, acting as a knowledge hub within our organisation. To ensure quality and consistency, we have a committee reviewing the investment cases, amongst others, based on how the analyst has incorporated ESG factors (which is a key-performance indicator for the analysts), thereby ensuring a systematic use. We actively participate in knowledge-sharing events to further accelerate ESG integration at our firm and share best-practices with the wider investment community.

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。








          thematic issues resulting from international conferences such as Climate COP Paris


10.2. 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。

          SWOT analysis, sensitivity analysis

10.3. ESG情報をポートフォリオの加重にどう統合しているかを説明してください。

We apply ESG information both from a top-down as well as a bottom-up perspective.

Top-down: we assess how material ESG trends and general longer-term trends are providing risks and opportunities in terms of financial and non-financial performance (themes such as changing climate, rising urbanization, emerging middle class, ageing population, health and wellbeing, rising cyber dependency, and SDGs).

Bottom-up: in our bottom-up analysis - which is typically conducted by our in-house team of dedicated equity analysts - we analyse the absolute and relative ESG performance of companies and whether we believe the market is underestimating or overestimating ESG risks and/or opportunities. We focus on the material, longer-term issues to the value creation of investee companies.

Four steps are important in this:

Identify the material issues

Assess the performance on the material issues

Integrate the material issues into the financial analysis

Have an active dialogue with the companies in which we are invested.

Based on these different viewpoints, our portfolio weighting differs from our benchmark as we apply and integrate ESG information to strengthen our conviction. The central question for us is: how sustainable is a company's value creation longer term?

Controversies: we specifically eliminate companies with the highest ESG controversies.

10.4. 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。

The way ESG information is integrated within the forecasts and valuation of the equity analysis process is twofold. In case we consider the ESG factors to have a visible impact on actual company cashflows (in terms of magnitude and timing), we will adjust our financial value drivers (e.g. revenues, margins, capex) accordingly. In case we consider the ESG factors as mainly impacting the risk profile of the company (in terms of risk to cashflow generation and/or risks towards company and/or management perception), but without a clear indication of magnitude and timing, we will adjust the cost of capital for the company to incorporate the associated risks.

10.5. 有価証券の評価に感応度/シナリオ分析をどのように適用しているか説明してください。

in case of companies or sectors where certain ESG aspects can materially drive the valuation and in case there is considerable uncertainty surrounding the most likely (regulatory) trajectory of these ESG aspects the financial analysis will incorporate different scenarios to account for the most likely, the worst case and best case scenario. Alternatively a sensitivity analysis can be done to vary the different ESG inputs and see what the implications would be for the margins, sales or valuation of the company. Examples of scenario analysis we have used in the past is for example the trajectory of CO2 regulation for car companies and the supply chain of auto companies, modelling different scenarios for penetration of electric vehicles, hybrids and combustion engines and the effects on the supply chain.

10.6. 補足情報 [任意]