Altis integrates ESG factors in selecting and monitoring external managers. This is reflected in the adoption of two ESG Scorecards that evaluates the performance of the asset management company as well as the ESG performance of the investment strategy or strategies itself. The scorecards are based on two questionnaires; a dedicated Investment Manager questionnaire and a Strategy questionnaire.
Factors that are assessed from an ESG perspective include:
• Governance of the Corporate, Ownership Structure, Independence of the Board, Diversity of the Board, diversity among the total workforce. Compensation Policies (independent committee, compliant with international regulations and standards, etc.
• Business Ethics – code of conduct policy, periodical training of employees, signatory, member or signatory of ethical codes and principles
• Active ownership – voting policy, focus on ESG issues and shareholder resolutions at shareholder meetings, disclosure of voting results, engagement policy, engagement activities (which engagement themes, what numbers and disclosure of engagement results), in-house voting and engagement specialists or outsourced to providers of these services
• Exclusion policy – exclusion criteria, number of excluded companies and countries, major changes in last 12 months
• Environmental Policies - setting environmental targets (e.g. carbon reduction, water use, energy consumption, waste generation), measuring and reporting on these targets, environmental collaborations and initiatives, etc.
• Social Policies -setting social targets (e.g. staff diversity, inclusiveness), measuring and reporting on these targets, social collaborations and initiatives,
Investment strategy scorecard
• Strategy specific (exclusion, voting and engagement) policies
• Strategy specific ESG resources (staff and ESG data/research)
• Integration of ESG factors in which phases of the investment process
• Strategy specific ESG targets regarding environmental impact (e.g. reduction CO2 emissions), social impact (e.g. job creation) and/or contribution to specific Sustainable Development Goals (SDGs)?
• Measurement, monitoring and reporting on these targets