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Alliance Bernstein

PRI reporting framework 2019

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ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

13.1. Indicate whether the organisation undertakes scenario analysis and/or modelling and provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

13.3. Additional information. [OPTIONAL]

 

 


SG 13 CC.


SG 14. Long term investment risks and opportunity

14.1. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following are considered.

14.2. Indicate which of the following activities you have undertaken to respond to climate change risk and opportunity

Specify the AUM invested in low carbon and climate resilient portfolios, funds, strategies or asset classes.

Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

Specify the framework or taxonomy used.

For certain clients, we exclude coal/high emission companies. We have a carbon neutral strategy, and others that exclude coal or are low carbon by design. 

14.3. Indicate which of the following tools the organisation uses to manage climate-related risks and opportunities.

14.4. If you selected disclosure on emissions risks, list any specific climate related disclosure tools or frameworks that you used.

We subscribe to MSCI's Carbon Metrics data tool to assist us in evaluating the companies in our portfolio and to measure the carbon footprint. AB became an Investor Signatory of the CDP (formerly the Carbon Disclosure Project) in May 2015.

14.5. Additional information [Optional]


SG 14 CC.

14.6 CC. Please provide further details on these key metric(s) used to assess climate related risks and opportunities.

Metric Type
Coverage
Purpose
Metric Unit
Metric Methodology
Weighted average carbon intensity
          We address the strategy’s carbon footprint in two ways: (1) when
analyzing the companies in which we invest. We often engage with companies to understand their strategy with regard to moving to a low carbon economy; (2) we work with our clients to develop solutions for their specific requirements.
        
          tons CO2e / $M sales 
tons CO2e / $M invested
        
          We use MSCI’s Carbon Metrics data
        
Carbon footprint (scope 1 and 2)
          We address the strategy’s carbon footprint in two ways: (1) when
analyzing the companies in which we invest. We often engage with companies to understand their strategy with regard to moving to a low carbon economy; (2) we work with our clients to develop solutions for their specific requirements.
        
          metric tons
        
          We use MSCI’s Carbon Metrics data
        
Portfolio carbon footprint
          We address the strategy’s carbon footprint in two ways: (1) when
analyzing the companies in which we invest. We often engage with companies to understand their strategy with regard to moving to a low carbon economy; (2) we work with our clients to develop solutions for their specific requirements.
        
          MSCI ESG Carbon Footprint Calculator which we use for portfolio carbon footprinting includes Carbon Emissions, Total Carbon Emissions, Carbon Intensity and Weighted Average Carbon Intensity.
        
          We use MSCI’s Carbon Metrics data
        
Total carbon emissions
          
        
          
        
          
        
Carbon intensity
          We address the strategy’s carbon footprint in two ways: (1) when
analyzing the companies in which we invest. We often engage with companies to understand their strategy with regard to moving to a low carbon economy; (2) we work with our clients to develop solutions for their specific requirements.
        
          tons CO2e / $M sales
tons CO2e / $M invested
        
          We use MSCI’s Carbon Metrics data
        
Exposure to carbon-related assets
          Our analysts evaluate investments on many factors, including their exposure to carbon-related assets, how the company is managing them, and they incorporate their assessment into their research.
        
          
        
          
        

14.8 CC. Indicate whether climate-related risks are integrated into overall risk management and explain the risks management processes for identifying, assessing, and managing climate-related risks.

Please describe

We started monitoring climate-related metrics in 2017 and are currently evaluating how to this can be integrated into our overall risk management strategy.

14.9 CC. Indicate whether the organisation undertakes active ownership activities to encourage TCFD adoption.

Please describe

We often engage with companies to encourage better disclosure and practices around climate-related risks. In 2018, we have begun to ask how companies are addressing the TCFD. 

Proxy voting is an integral part of encouraging better disclosure. We generally support shareholder proposals calling for climate-related reports and disclosure while taking into account existing policies and procedures of the company and whether the proposed information is of added benefit to shareholders.


SG 15. Allocation of assets to environmental and social themed areas

15.1. Indicate if your organisation allocates assets to, or manages, funds based on specific environmental and social themed areas.

15.2. Indicate the percentage of your total AUM invested in environmental and social themed areas.

.87 %

15.3. Specify which thematic area(s) you invest in, indicate the percentage of your AUM in the particular asset class and provide a brief description.

Area

Asset class invested

.34 % of AUM
.11 % of AUM

Brief description and measures of investment

  • Low Carbon Energy Generation & Infrastructure
  • Energy Efficiency
  • Clean Transportation
  • Sanitation & Recycling
  • Sustainable Production 

 

Asset class invested

.55 % of AUM

Brief description and measures of investment

Our total AUM in Green Bonds is around $760MM. Although it is still small, it is growing. We have participated in Green Bonds where the use of the proceeds included renewable energy. 

Asset class invested

.03 % of AUM

Brief description and measures of investment

Our total AUM in Green Bonds is around $760MM. Although it is still small, it is growing. We have participated in Green Bonds where the proceeds are used for green buildings. 

Asset class invested

.02 % of AUM

Brief description and measures of investment

Our total AUM in Green Bonds is around $760MM. Although it is still small, it is growing. We have participated in Green Bonds where the use of the proceeds included sustainable forestry. 

Asset class invested

.02 % of AUM

Brief description and measures of investment

  • Food Security
  • Adapting Agriculture to be less Vulnerable to Climate Change 

Our total AUM in Green Bonds is around $760MM. Although it is still small, it is growing. We have participated in Green Bonds where the use of the proceeds included sustainable agriculture. 

Asset class invested

.70 % of AUM
.04 % of AUM

Brief description and measures of investment

  • Economic Infrastructure 
  • Enabling Technologies
  • Gender Equality 
  • Financial Inclusion
  • Physical Safety
  • Municipal bonds with social impact 
  • Sustainability bonds 

Asset class invested

.02 % of AUM

Brief description and measures of investment

  • Finanical Inclusion 
  • Housing bonds in the US municipal market 

Asset class invested

.11 % of AUM

Brief description and measures of investment

As a significant part of the Municipal Impact Portfolio, we invest in primary, secondary and adult education systems/facilities in areas with large underserved or low socio-economic status populations. 

 

Asset class invested

.51 % of AUM
.06 % of AUM

Brief description and measures of investment

  • Medical Innovation
  • Access to Affordable Medical Care
  • Healthy Lifestyles
  • Closing Gaps in Life Expectancy 

Asset class invested

.15 % of AUM
.08 % of AUM
.04 % of AUM

Brief description and measures of investment

  • Water Infrastructure, Conservation, Treatment & Management

15.4. Please attach any supporting information you wish to include. [OPTIONAL]



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