ESG considerations are explicitly incorporated in MN's manager selection& monitoring processes. The managers are assessed on five factors; parent, people, process, performance and planet (ESG). Underlying factors within Planet are the manager's commitment to Responsible Investing (evaluated by the manager having a company-wide ánd asset class specific integration policy, being an UN PRI signatory or not and having a responsible executive for ESG), integration of ESG in the investment process, evidence of integration& reporting, voting & engagement and the integration of an exclusion policy. Therefore responsible investment considerations are part and parcel of MN's continuous assessment of managers.
With respect to appointment of new managers, MN screens up front on RI. Every manager that responds to a Request for Proposal has to include how it deals with responsible investing. Via a dedicated strategy specific questionnaire the manager has to show if there is RI-commitment on a board level, if it has a RI-policy and how ESG-criteria are implemented in the investment process. Also MN strongly prefers managers who are PRI-signatories. If a manager does not meet these criteria and does not show that it will work on meeting the criteria the manager is not eligible for selection.