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Australian Ethical Investment Ltd.

PRI reporting framework 2019

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (A) Implementation: Screening

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

Australian Ethical will only invest where making the investment is assessed to be aligned with our Ethical Charter (www.australianethical.com.au/australian-ethical-charter). The 23 Charter principles specify twelve things we invest to support and eleven harms we invest to minimise. These principles guide us to investments which support people, animals and the environment (positive screening) and which do not cause them unnecessary harm (negative screening). This requires us to assess the positive and negative impacts on people, animals and the environment of a company's products and services, including impacts from the way those products and services are produced, supplied, consumed and disposed of.

Our negative screen leads us to avoid, for example, tobacco, weapons, fossil fuels, discriminatory and exploitative business practices and other unsustainable products, services and companies.

スクリーニング実行者

説明

Australian Ethical will only invest where making the investment is assessed to be aligned with our Ethical Charter (www.australianethical.com.au/australian-ethical-charter). The 23 Charter principles specify twelve things we invest to support and eleven harms we invest to minimise. These principles guide us to investments which support people, animals and the environment (positive screening) and which do not cause them unnecessary harm (negative screening). This requires us to assess the positive and negative impacts on people, animals and the environment of a company's products and services, including impacts from the way those products and services are produced, supplied, consumed and disposed of.

Our positive screen leads us to support sustainable and positive impact businesses including energy efficiency and energy storage technologies, renewable energy, medical breakthroughs, recycling, efficient transport and other sustainable products and services.

スクリーニング実行者

説明

As well as considering the impacts of the products and services produced by a company, we also consider the way those products and services are produced. International norms are an important guide in our assessment of this, particularly where companies based in developed countries also operate in less developed markets or source goods and services from those markets. For example, we will avoid companies which systematically ignore their responsibilities under the UN Guiding Principles on Business and Human Rights.

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。

We communicate with clients via letters, emails, our Good Money magazine and the Company's website and social media. This includes explaining how we apply our Ethical Charter to different companies, industry sectors and ethical issues. We also list the companies we invest in on our website. We summarise our analysis of key issues and update developments on our website (https://www.australianethical.com.au/super/our-position-on-topical-issues/; https://www.australianethical.com.au/good-money/). 


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。

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。

05.5. 補足情報 [任意]

We regularly approach companies to obtain additional information to assist our analysis of their environmental and social impacts and management of those impacts. This includes approaching companies to confirm specific analysis and conclusions in important cases. However, we do not give companies the opportunity to review our ESG research on them and correct inaccuracies in all cases. Some of our external research and data providers do provide details of their analysis to companies which gives them the opportunity to correct inaccuracies.

We conduct a periodic review of our company ethical assessments every 2 years. Reviews will occur more frequently where significant ESG incidents occur. If an ESG incident is identified or the activities or circumstances of an investee company changes such that the company's activities may breach a principle of our Ethical Charter, our ethics team will consult with the investment analyst and investigate and assess the significance of the breach (including its impact on the ethical assessment of the company under the Charter) and the prospects for engagement with the company to take action which would remedy the breach.

Our external ESG research provider updates their company ESG ratings and other ESG data annually or more frequently in response to significant incidents.


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。

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。

As all our listed equities are internally managed, there are systems and procedures in place to avoid breaches of fund screening criteria. The CIO only approves a limit for a company after it is assessed for alignment with the Ethical Charter. Investments may only be made once the limit is approved. The spreadsheet which records the investment limits is linked to our spreadsheet record of companies’ ethical alignment status. This enables automated verification that all companies with limits meet our screening criteria.

If we identified that an investment had been made without the required ethical assessment, then either:

- the investment would be sold as soon as practical; or

- if there is a reasonable prospect that the investment would be assessed as investable under the Ethical Charter, we may conduct an assessment of the investment as soon as practical. If the investment was approved under the Charter it could be retained; if it was not approved it would be sold as soon as practical.

Where an investment has passed our ethical assessment process but new information emerges that a company's activities may breach a principle of our Ethical Charter, our ethics team will consult with the investment analyst and investigate and assess the significance of the breach (including its impact on the ethical assessment of the company under the Charter) and the prospects for engagement with the company to take action which would remedy the breach. If the issue cannot be resolved and is sufficiently serious we will divest.

06.3. 補足情報 [任意]


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