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Swen Capital Partners

PRI reporting framework 2019

You are in Indirect – Manager Selection, Appointment and Monitoring » Outputs and outcomes

Outputs and outcomes

SAM 08. Percentage of externally managed assets managed by PRI signatories

08.1. Describe how you ensure that best RI practice is applied to managing your assets

Measures

          In the monitoring phase, the management companies' funds that SWEN CP subscribes to are surveyed yearly based on a specific ESG questionnaire. The same applies to the underlying holdings of these funds and  those invested directly. Thus the ESG analysis is ensured on the basis of answers to  “management company”, “participations” and “infrastructure assets” questionnaires completed online, via an ESG data collection and management tool. The reported data enables the implementation of numerous ESG performance indicators that are presented in an aggregated manner in the annual ESG reports of the institutional funds and mandates managed by SWEN Capital Partners.  A follow-up of these indicators is then carried out over time for each stakeholder (management company, funds, underlying funds) and makes it possible to fully assess the management companies’ responsible investor practices  (benchmarking), particularly with regard to proprietary ESG benchmarks. Thanks to a substantial extra-financial database that has accumulated more than 6 years of history, SWEN Capital Partners is able to calculate benchmarks for these same indicators and track them over time. Moreover, committed to build long-term partnership with its general partners, SWEN CP regularly engages in dialogue with them during private meetings, conferences, etc. ESG and responsible investment issues are systematically addressed during these meetings. The main interest is to discuss with the investment team how responsible policies are truly implemented, beyond mere declarations of intent displayed on corporate website / documents. This is also the opportunity to learn about RI future projects which will be rolled out and to identify best practices. These two different approaches (annual survey and on-going dialogue) provide SWEN CP with the essential material not only to prepare detailed ESG reporting to its clients but also to identify improvement areas and topics to be further discussed with its GPs.

In addition, the investment team of SWEN Capital Partners, responsible for the investments made, systematically integrates in its monitoring a particular attention to the material ESG issues and necessary action plans implemented within the companies and financed assets. 

Finally, SWEN Capital Partners has set up a monitoring system for controversies that allows daily reporting of information, most often "extra-financial, on the main positions of portfolios managed and / or advised by SWEN Capital Partners. The objective of this daily monitoring is especially to better manage the reputational risk of the main investments indirectly and directly financed, but also, as a resulting consequence, better manage those of SWEN Capital Partners and its own institutional investors.
        

08.2. Additional information. [Optional]


SAM 09. Examples of ESG issues in selection, appointment and monitoring processes

09.1. Provide examples of how ESG issues have been addressed in the manager selection, appointment and/or monitoring process for your organisation during the reporting year.

Topic or issue
          Climate Strategy and side letters agreement
        
Conducted by
Asset class
Scope and process

In keeping with its commitment to combat climate change, SWEN Capital Partners formalised its Climate Strategy in the second half of 2017. This documents states that SWEN Capital Partners is engaged to "determine the commitments, mechanisms and policies adopted by management companies in order to assess the exposure of their holdings to the physical and transition risks related to climate change, as well as the mechanics of support and implemented transformation. If the management company is not sufficiently experienced in these issues, SWEN Capital Partners inserts a “climate-meeting” clause in the side letters signed with the fund managers". 

Outcomes

In 2018, side letters containing “climate-meeting” clause were signed with fund managers which were considered as laggard in terms of climate change policy or strategy. 

Topic or issue
          ESG incident monitoring
        
Conducted by
Asset class
Scope and process

In 2018, Swen Capital Partners' monitoring system for controversies were fully operational. Several ESG controversies or incidents were reported. Depending on the level of severity of each incident, procedures have been set up. They range from emails to our investment team to meetings with investment managers (lead investor side) to better understand the causes of the incident, how it has been managed and the measures implemented to prevent a new occurrence. 

Outcomes

In 2018, at least 7 ESG incidents required further investigation and led to meetings or exhange of emails with funds managers or the companies management. This allowed SWEN Capital Partners to communicate on these incidents, through its quarterly ESG controversy reports, and provide its clients with a better context and explanations.

Topic or issue
          Allocation for "green assets"
        
Conducted by
Asset class
Scope and process

In its Climate Strategy SWEN Capital Partners commited to "reserve for each new managed institutional fund, a fraction of the allocation for "green" assets, that is, companies and assets that contribute positively to the transition to a low-carbon world".

Outcomes

In 2018, SWEN Capital Partners completed its first investments as part of this specific allocation policy

09.2. Additional information.


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