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Impax Asset Management

PRI reporting framework 2019

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

アクティブ運用している上場株式におけるESGの組み入れ

実施プロセス

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%)
20 %
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%)
80 %
アクティブ運用している上場株式の合計 100%

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。

Impax Asset Management incorporates thematic, screening and integration strategies.

At Impax, we focus on the risks and opportunities arising from the transition to a more sustainable global economy. The analysis of environment, social, and governance (ESG) issues is complementary to our focus on risk management and quality and is integrated into the investment process of each of our strategies and portfolios.

Equity investments at Impax can be classified in three categories:

1. Thematic Active Equities (thematic, screening and integration)

  • Environmental strategies (new energy, water, waste management, sustainable food)

2. Active Equities (screening and integration)

  • US Equities
  • Global Equity Opportunities

3. ESG Smart Beta Passive Equities (screening and integration)

  • Gender Leadership 
  • Sustainability Fund (quantitative ESG scoring)

 

1. Thematic Active Equities (thematic, screening and integration)

Impax is a leading investment manager dedicated to investing in the opportunities created by the transition to a more sustainable economy. Our thematic listed equity funds seek out mis-priced companies globally that are set to benefit from the long-term trends of climate change, inadequate infrastructure, environmental constraints, changing demographics, urbanisation and the resultant increases in resource scarcity. We expect that these trends, will drive earnings growth for well-positioned companies.

Investment is focused on a small number of deeply researched global equity strategies across alternative energy, energy efficiency, water, waste, food and agriculture and related markets. 

The entire thematic environmental investable universe is screened quarterly on a normative-basis by a third party ESG-research provider, in order to ensure that none of our companies breach any of the ten UN Global Compact Principles. We will not invest in companies that breach fundamental normative issues such as Human Rights, Labour Rights or are involved in corrupt practices. We do not perform negative activity screens, however we positively screen for global listed equities with at least 20% of revenues from environmental activities, as defined by the "Environmental Markets" classification system. 

A detailed ESG-analysis and proprietary ESG-scoring is fully integrated in our investment analysis and process, as it provides us with a more complete picture of the companies we invest in and results in a better assessment and understanding of the broader risks and opportunities. By analysing companies beyond the financials, we aim to identify company character and quality.

 

2. Active Equities (screening and integration)

US Equities

Our active equity strategies are high conviction, core strategies focused on adding value through superior stock selection. Our active equity teams integrate research from our ESG analysts throughout the investment process. Companies with highly rated or improving ESG profiles can be considered during idea generation, and the integration of ESG research helps us uncover risks when conducting fundamental analysis of companies. Deterioration of a company’s sustainability profile may also be a factor in the decision to sell a company.

Our team assesses key ESG issues for each sector, industry and sub-industry and weight ESG factors accordingly. We focus on companies’ ability to manage operational and reputational risks and to capitalize on opportunities arising from the shift towards a more sustainable global economy.

Global Equity Opportunities

The Impax Sustainability Lens identifies sub-sectors and companies that have lower risks and higher opportunities, benefiting from the transition to a more sustainable economy.

The Global Equity Opportunities investable universe is screened quarterly on a normative-basis by a third party ESG-research provider, in order to ensure that none of our companies breach any of the ten UN Global Compact Principles. We will not invest in companies that breach fundamental normative issues such as Human Rights, Labour Rights or are involved in corrupt practices.

A detailed ESG-analysis and proprietary ESG-scoring is fully integrated in the investment analysis and process, as it provides us with a more complete picture of the companies we invest in and results in a better assessment and understanding of the broader risks and opportunities. By analysing companies beyond the financials, we aim to identify company character and quality.

 

3. ESG Beta Solutions (screening and integration)

Impax offers solutions that systematically create market exposure incorporating ESG insights using quantitative optimization tools to manage risks relative to market benchmarks and target desired tilts in characteristics. These tilts involve integration of ESG ratings systematically alongside financial factors in portfolio construction through optimization.

We have developed two proprietary ESG rating frameworks employing a quantitative approach to ESG assessment.

  • Impax Gender Leadership Score: The Gender Leadership Score is a proprietary framework of gender leadership factors used to determine the constituents and weights of a global investment strategy designed to capture investment returns associated with gender diversity and women's leadership.
  • Impax Sustainability Score: The Sustainability Score is a proprietary, relative ranking framework designed to capture information regarding a company’s management and performance related to material ESG issues. The framework is used to determine the constituents and weights in U.S. large-cap smart beta portfolios.

 

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]

Across all Impax strategies we focus on the risks and opportunities arising from the transition to a more sustainable global economy. The analysis of environment, social, and governance (ESG) issues is complementary to our focus on risk management and quality and is integrated into the investment process of each of our strategies and portfolios. 

Impax ESG policy:

https://www.impaxam.com/sites/default/files/Impax_ESG_Policy_2019_0.pdf


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。

ESG情報の種類

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

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。

We incentivise brokers through quarterly payments for original and value-adding analysis and research, including ESG and sustainability research. We endeavour to participate in II, Extel, IRRI annual sell-side research voting, highlighting the importance of ESG and sustainability research on the sell-side. 

02.4. 補足情報 [任意]


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]

"ESG and Stewardship activities" (engagement and proxy voting) is a standing agenda item at the Investment Committee meeting and significant ESG issues and engagements are discussed at the daily meetings in the investment team. The Engagement Database enables viewing and tracking all historic and on-going engagements.

An internal research platform, the "Portal", enables storing and viewing relevant ESG related information about all our investee companies.   


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。

スクリーニングの種類

スクリーニング実行者

説明

For the Active US Equities and ESG Beta Solutions, we seek to avoid investing in companies:

  • Involved in the manufacture/sale of weapons; 
  • Manufacture tobacco products; 
  • Whose primary business is coal mining and production; 
  • Whose sole or majority operations are in oil sands; 
  • Whose reliance on coal, in the case of utilities, is above the national average, unless that utility has demonstrated a significant commitment to renewables and is reducing its dependence on coal.

スクリーニング実行者

説明

Thematic Environmental Active Equities:

Our thematic listed equity funds seek out mis-priced companies that are set to benefit from the long-term trends of climate change, inadequate infrastructure, environmental constraints, changing demographics, urbanisation and the resultant increases in resource scarcity. Investment is focused on a small number of deeply researched global equity strategies across alternative energy, energy efficiency, water, waste and sustainable food. We positively screen for companies active in these areas, with a min. 20% of revenues.

US Equities:

Our actively managed US listed equity funds use positive or best-in-class criteria. The result, we believe, is an increased level of scrutiny that helps us construct investment portfolios made up of better-managed companies that are leaders in their industries, meet positive standards of corporate responsibility and are more focused on the long term.

 

 

スクリーニング実行者

          Companies involved in the production / manufacturing of cluster munitions or anti-personnel mines would be screened out, as this constitutes a human rights breach.
        

説明

Thematic Active Equities and Global Active Equities:

The investable thematic environmental and global listed equity universes are screened on a normative-basis by a third party ESG-research provider on a quarterly basis, in order to ensure that none of our investee companies are in breach of any of the ten UN Global Compact Principles. We will not invest in companies that breach fundamental issues such as Human Rights, Labour Rights or are involved with corrupt practices.

Companies involved in the production / manufacturing of cluster munitions or anti-personnel mines would also be screened out, as this constitutes a de facto human rights breach.

 

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。

The screening criteria are established by a deliberative process incorporating portfolio management, sustainability research, and senior management staff. Clients and beneficiaries are notified when substantive changes are made.

 

 


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。

          Third party independent committee verifies bi-annually the continued validity of the environmental inclusion criteria and definitions, underpinning our positively screened thematic environmental investment universe.
        

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]

Positive screening for environmental activity (active thematic equities)

Companies must have at least 20% of revenues from environmental or resource efficiency activities to be part of the Impax investment universe. Impax has dedicated staff developing and maintaining the investment universe. The entire universe is screened once a year to ensure that all companies still adhere to the minimum revenue target. Companies that no longer attain this minimum level of revenue are removed from the investable universe database. There is a third party independent committee that verifies bi-annually the continued validity of the environmental inclusion criteria and definitions, underpinning our positively screened investment universe.

Positive screening on ESG-criteria, best-in-class (US active equities)

Our actively managed US equity funds use positive or best-in-class criteria. The result, we believe, is an increased level of scrutiny that helps us construct investment portfolios made up of better-managed companies that are leaders in their industries, meet positive standards of corporate responsibility and are more focused on the long term.

Normative screening (active thematic equities and active global equities)

A third party ESG-research provider screens our investable universe every quarter to identify any potential UN Global Compact issues. Companies which are found to have minor issues are flagged and we monitor these particularly thoroughly and engage with these companies where relevant. Companies that are not compliant with the UN Global Compact principles are excluded from investment and excluded from our "A-list" or investable universe database. Companies involved in the production / manufacturing of cluster munitions or anti-personnel mines would also be screened out, as this constitutes as a human rights breach. We use external data providers to flag controversial business activities.

Screening of ESG criteria (ESG analysis) - across all equity strategies:

Impax's proprietary and integrated ESG-analysis is an integral part of the Impax investment process. Companies in our investable universe are ESG-analysed at a minimum annually. Our multi-step  investment process incorporates ESG parameters into the investment analysis of companies through a thorough examination of company management/board structures, governance, ownership, corporate behaviour and Environmental and Social policies, processes and disclosures, following a materiality approach. We produce a proprietary ESG-report for each company. In addition, for Hong Kong and China-based companies, we have a further "governance tool" in place and we have identified five governance metrics that each company entering our investable universe must have in place. 


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。

          Third party independent committee verifies bi-annually the continued validity of the environmental inclusion criteria and definitions, underpinning our positively screened environmental investment universe.
        

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。

Impax has developed systematic compliance procedures for our trading system to ensure that fund criteria are not breached. The system leverages IT infrastructure, compliance functions and checks across several departments to ensure compliance.

Positive screening for environmental activity (active thematic equities)

Companies must have at least 20% of revenues from environmental or resource efficiency activities to be part of the Impax investment universe. The entire universe is screened once a year to ensure that all companies still adhere to the minimum revenue target. Companies that no longer attain this minimum level of revenue are removed from the investable universe database. There is a third party independent committee verifies bi-annually the continued validity of the environmental inclusion criteria and definitions, underpinning our positively screened environmental investment universe.   

Normative screening (active thematic equities and active global equities)

A third party ESG-research provider screens our investable universe every quarter to identify any potential UN Global Compact issues. Companies which are found to have minor issues are flagged and we monitor these particularly thoroughly and engage with these companies where relevant. Companies that are not compliant with the UN Global Compact principles are excluded from investment and excluded from the investable universe. Companies involved in the production / manufacturing of cluster munitions or anti-personnel mines would also be screened out, as this constitutes as a human rights breach. We use external data providers to flag controversial business activities.

Screening of ESG criteria (ESG analysis) - (all equity strategies)

Impax's proprietary and integrated ESG-analysis is an integral part of the Impax investment process. Our investment process incorporates ESG parameters into the investment analysis of companies through a thorough examination of company management/board structures, governance, ownership, corporate behaviour and environmental and social policies, processes and disclosures, following a materiality approach. We produce a proprietary ESG-report for each company. If companies do not attain the required ESG quality, they will be excluded from our investable universe and can not be traded in our trading systems. In addition, for Hong Kong and China-based companies, we have a further "governance tool" in place. We have identified five governance metrics that each company entering our investable universe must have in place. 

We have a proprietary data analytics and risk tool that identifies and immediately flags any breaches to our screening rules and principles.

 

06.3. 補足情報 [任意]


B) 実施:テーマ

LEI 07. Types of sustainability thematic funds/mandates

07.1. 組織が運用している、サステナビリティをテーマとするファンドやマンデートの種類を記載してください。

07.2. 組織でのサステナビリティをテーマとしたファンドのプロセスについて説明してください。 [任意]

Environmental strategies

Impax Asset Management is dedicated to investing in the opportunities created by the transition to a more sustainable economy and the scarcity of natural resources and the growing demand for cleaner, more efficient products and services, through both listed and private equity strategies.

Impax's environmentally themed listed equity strategies seek out mis-priced companies that are set to benefit from the long-term trends of climate change, inadequate infrastructure, environmental constraints, changing demographics, urbanisation and the resultant increases in resource scarcity. We expect that these trends will drive earnings growth for well-positioned companies. Investment is focused on a small number of deeply researched global equity strategies across alternative energy, energy efficiency, water, waste, sustainable food and agriculture and related markets.

As part of our investment process, we develop and maintain a large database of our entire environmental thematic investment universe, currently c. 1,600 companies. We review and update the exact % of revenue (or other business activity indicator) derived from the environmental solution / activity for each company on an annual basis. This process ensures that our investee companies are and continue to be part of the economy and sectors benefiting from resource and environmental opportunities and to further develop and expand our investment universe. The companies we invest in must derive at least 50% or 20% of revenues (depending on the strategy) from Environmental Market activities.

One person in the Impax investment team is dedicated to maintaining and developing the environmental investment universe.

Impax is a thought-leader in defining environmental markets, for example through a partnership with FTSE to develop and manage the classification system underpinning the FTSE Environmental Markets Index Series.

Environmental Markets classification: https://www.impaxam.com/investment-philosophy/ftse-environmental-markets

Global Women's Leadership strategy

We have developed a proprietary rating framework that employ a quantitative approach to gender leadership assessment. The framework is incorporated into portfolios that use quantitative optimization tools to manage risks relative to market benchmarks and target desired tilts in characteristics. These tilts involve integration of gender leadership and ESG ratings systematically alongside financial factors in portfolio construction through optimization.

Impax Gender Leadership Score: The Gender Leadership Score is a proprietary framework of gender leadership factors used to determine the constituents and weights of a global investment strategy designed to capture investment returns associated with gender diversity and women's leadership.

https://paxworld.com/funds/pax-ellevate-global-womens-leadership-fund/


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。

ESG問題

影響を受ける割合
E(環境)

E(環境)

S(社会)

S(社会)

コーポレートガバナンス

コーポレートガバナンス

08.2. 補足情報 [任意]

ESG-analysis is an integral part of the Impax investment process. Our actively-managed Listed Equities investment process incorporates ESG-parameters into the fundamental investment analysis of the companies in our investable universe. Our smart beta investment processes systematically incorporate proprietary ESG ratings alongside financial factors in portfolio construction through optimization.

As part of the ESG-analysis, we write a proprietary ESG-report. We review the ESG analysis periodically and if a material event occurs.

The ESG reports are available for the entire investment team in our research system, the "Portal" and in the risk management and portfolio review as well as portfolio construction materials.

ESG issues are a standing agenda item at the Investment Committee meetings and during the portfolio review meetings for the various listed equity strategies.

Impax's externally disclosed ESG policy:

https://www.impaxam.com/sites/default/files/Impax_ESG_Policy_2019_0.pdf


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。

          All ESG information is available in our research system "Portal", universe and market data databases and in Portfolio Review Meeting (PRM) documents.
        

09.6. 補足情報 [任意]

ESG-analysis is an integral part of the Impax investment process. Our actively-managed Listed Equities investment process incorporates ESG-parameters into the fundamental investment analysis of the companies in our investable universe. Our smart beta investment processes systematically incorporate proprietary ESG ratings alongside financial factors in portfolio construction through optimization.

As part of the active equity strategies' ESG-analysis, we write a proprietary ESG-report. We review the ESG analysis periodically and if a material event occurs.

The ESG reports are available for the entire investment team in our research system, the "Portal" and in the risk management and portfolio review as well as portfolio construction materials.

ESG issues are a standing agenda item at the Investment Committee meetings and during the portfolio review meetings for the various listed equity strategies.


LEI 10. Aspects of analysis ESG information is integrated into

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。

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。

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

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。

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。

Impax Thematic active environmental strategies and Active Global Equities:

We conduct detailed, proprietary financial and ESG-analysis of companies considered for the investable universe and review the ESG-analysis periodically. We assign a proprietary ESG-rating for each company. If a company scores below our threshold-level, it is excluded from our investable universe. 

Our portfolio construction process takes ESG into account. Companies with ESG-scores below a certain level have their position sizes capped in the portfolios for risk management purposes. Companies with strong ESG-scores or with improving ESG-profiles, can give conviction to the portfolio manager to increase the position-sizes in the portfolio. 

The lead analysts can adjust the WACC on companies based on ESG factors.

Impax US Large Cap Active Equities:

We integrate ESG-data provided by the Sustainability Research team to inform stock selection and position sizing. For example, based on internal ESG-research, the portfolio managers have the confidence to make a global diversified industrial manufacturing company one of the largest active positions in the portfolio. This company is a leader in energy-efficient HVAC systems and has set targets for improving key sustainability issues, including GHG emissions, water and waste. It demonstrates strong gender diversity on the board and in senior management.

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 lead analysts of the Impax thematic active environmental strategies and active global equities can apply a higher WACC (weighted average cost of capital) on companies with higher company or sector-specific ESG risks and adjust financial and operative forecasts based on ESG-factors, risks or opportunities (e.g. water scarcity) or financial provisions (or estimated provisions) made by companies for e.g. pollution litigation or an asbestos class-action.

10.6. 補足情報 [任意]


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