In 2018, Altis updated and further improved the ESG questionnaire for rating both external managers and their investment strategies (funds and mandates). The number of ESG-related questions roughly doubled from 31 to 76 questions.
The emphasis of the ESG questionnaire moved from having just ESG-, exclusion-, voting-, engagement-, remuneration- and other ESG policies in place to the actual implementation of these policies in terms of ESG integration (from research, portfolio construction, monitoring and risk management up to and including reporting), introducing new exclusion criteria, voting against management at shareholder meetings and number of companies under engagement. The questionnaire was sent to 82 managers covering 172 investment strategies (fund/mandates) in 2018.
Based on peer analysis of survey results, Altis is now able to identify laggards and frontrunners regarding ESG.
In the new ESG questionnaire we also ask for:
· Dedicated ESG staff (FTE) as % of total staff.
· If the external manager accommodates periodical employee training on the importance and relevance of ESG factors in investing
· In which phases of the investment process (research, portfolio construction, monitoring and risk management, reporting) ESG factors are integrated.