We have a formal responsible investment policy but we do not require our external managers to engage with companies on ESG issues on our behalf. However, we have certain dialogues/discussions with our portfolio managers on ESG issues. Our approach is to encourage partners to join the PRI.
Even if we do not formally integrate ESG factors into our investment decisions we take ESG issues into consideration in our analysis. As an example, we incorporate questions on ESG within our external manager selection process such as:
1) Are you a signatory to Principles for Responsible Investment ?
2) Can you explain how ESG analysis is integrated into investment decisions ?
The vast majority of RRUQ partners are PRI signatories and must therefore integrate ESG factors into their management practice. We believe incorporating environmental, social and governance analysis into our selection processes makes for more informed investment decisions.