This report shows public data only. Is this your organisation? If so, login here to view your full report.

CCLA

PRI reporting framework 2019

Export Public Responses
Pdf-img

You are in Strategy and Governance » Asset class implementation not reported in other modules

Asset class implementation not reported in other modules

SG 16. ESG issues for internally managed assets not reported in framework

Describe how you address ESG issues for internally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Fixed income - SSA

CCLA does not buy debt from 43 of the world's most oppressive regimes. This list has been created using the following data sources:

Freedom House: Freedom House is an independent, US-based, organization that analyses ‘challenges to freedom’ in the World. They produce an annual, ‘Freedom in the World’ publication ranking countries on their political rights and civil liberties with the standards set based upon the Universal Declaration of Human Rights. Countries are awarded rankings for ‘Political Rights’ and ‘Civil Liberties’ from 1 (the most ‘free’) to 7 (the least). Countries with an average score across both rankings of 6 or higher have been added to the restricted list.

Transparency International: Transparency International is an NGO focussed upon developing ‘a world in which government, business, civil society and the lives of daily people are free of corruption’. They produce an annual ‘Corruptions Perceptions Index’ that ranks ‘180 countries and territories by their perceived levels of public sector corruption’. We have included the 20 worst ranked countries on the list.

Arms Embargoes: Finally, we include countries that are subject to ‘arms embargoes’ by either the UN or EU

Fixed income - Corporate (financial)

Our responsible investment process is designed to assess the underlying strengths and weaknesses of companies. For this reason, we apply the same approach when assessing equities and fixed income issuers. This means that we we carefully assess the environmental, social and governance (ESG) standards of all issuers prior to purchasing their securities. We have processes to identify and remove issuers who are the worst placed against the transition to the low carbon economy, have poor corporate governance or inadequate processes to manage ESG risks from our investment universe. This makes an active difference to our Fixed Interest portfolios.

We also apply our clients' ethical screens when investing in fixed income.

Fixed income - Corporate (non-financial)

See answer above

Private equity

Our only direct private equity investment is our Funds' holding in CCLA.

Cash

We adopt a rigorous approach to considering the ESG standards adapted by our cash and money-market counterparties. This includes an annual assessment, engagement and a restrictions from lending.

Money market instruments

We adopt a rigorous approach to considering the ESG standards adapted by our cash and money-market counterparties. This includes an annual assessment, engagement and a restrictions from lending.

16.2. Additional information [Optional].

Many of our clients require us to implement ethical investment policies that are designed to protect their reputation and reflect their values in the management of their portfolios. These are fully implemented in all asset classes. 


SG 17. ESG issues for externally managed assets not reported in framework

17.1. Describe how you address ESG issues for externally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Private equity

We recognise that implementing our responsible investment processes and our clients’ ethical rules into the investment decisions made by other funds is challenging. For this reason, we have adopted the following strategy:

Prior to allocating our clients’ capital to a third-party investment vehicle we seek to establish a legal agreement. This ensures that ESG criteria are considered by the manager and restricts investment in the activities that our clients wish to avoid in their portfolio.


If this is not possible, and there is no alternative route to the investment, we consider the Fund Manager’s house approach to responsible investment and the underlying exposure to the activities restricted by our clients. Should more than 10% of the Fund’s net asset value be exposed, or likely to be exposed in the future,  to such activities or we have concerns about their approach to ESG we would not proceed to investment. We also ensure that considerably less than one percent of the capital in our own funds is exposed to restricted activity in this way.


Finally, once an investment has been made we continue to monitor exposure to restricted activity and would divest from any fund if this breached the 10% threshold.   

Property

We apply the same approach as described in the Private Equity section

Infrastructure

We apply the same approach as described in the Private Equity section

Forestry

We apply the same approach as described in the Private Equity section

Inclusive finance

We apply the same approach as described in the Private Equity section

Other (1) [as defined in Organisational Overview module]

We apply the same approach as described in the Private Equity section

17.2. Additional information.


Top