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

Schroders

PRI reporting framework 2019

Export Public Responses
Pdf-img

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

Selection

SAM 02. Selection processes (LE and FI)

02.1. Indicate what RI-related information your organisation typically covers in the majority of selection documentation for your external managers

Your organisation’s investment strategy and how ESG objectives relate to it

ESG incorporation requirements

ESG reporting requirements

Other

No RI information covered in the selection documentation

Private equity
Your organisation’s investment strategy and how ESG objectives relate to it
ESG incorporation requirements
ESG reporting requirements
Other
No RI information covered in the selection documentation

If you select any 'Other' option(s), specify

Schroder Adveq considers responsible investing considerations to affect all aspects of an external manager's business.  Thus, all documentation related to external manager diligence is relevant to assessing responsible investing.  The documentation sourced covers manager operations, investment process documentation, underlying company financial and business information, legal documentation, external independent sources of news/background information and information gathered from reference calls.

02.2. Explain how your organisation evaluates the investment manager’s ability to align between your investment strategy and their investment approach

Strategy

Assess the time horizon of the investment manager’s offering vs. your/beneficiaries’ requirements

Assess the quality of investment policy and its references to ESG

Assess the investment approach and how ESG objectives are implemented in the investment process

Review the manager’s firm-level vs. product-level approach to RI

Assess the ESG definitions to be used

Other

None of the above

Private equity
Assess the time horizon of the investment manager’s offering vs. your/beneficiaries’ requirements
Assess the quality of investment policy and its reference to ESG
Assess the investment approach and how ESG objectives are implemented in the investment process
Review the manager’s firm-level vs. product-level approach to RI
Assess the ESG definitions to be used
Other
None of the above

ESG people/oversight

Assess ESG expertise of investment teams

Review the oversight and responsibilities of ESG implementation

Review how ESG implementation is incentivised

Review the manager’s RI-promotion efforts and engagement with the industry

Other

None of the above

Private equity
Assess ESG expertise of investment teams
Review the oversight and responsibilities of ESG implementation
Review how is ESG implementation enforced /ensured
Review the manager’s RI-promotion efforts and engagement with the industry
Other
None of the above

Process/portfolio construction/investment valuation

Review the process for ensuring the quality of the ESG data used

Review and agree the use of ESG data in the investment decision making process

Review and agree the impact of ESG analysis on investment decisions

Review and agree ESG objectives (e.g. risk reduction, return seeking, real-world impact)

Review and agree manager’s ESG risk framework

Review and agree ESG risk limits at athe portfolio level (portfolio construction) and other ESG objectives

Review how ESG materiality is evaluated by the manager

Review process for defining and communicating on ESG incidents

Review and agree ESG reporting frequency and detail

Other, specify

None of the above

Private equity
Review the process for ensuring the quality of the ESG data used
Review and agree the use of ESG data in the investment decision making process
Review and agree the impact of ESG analysis on investment decisions
Review and agree ESG objectives (e.g. risk reduction, return seeking, real-world impact)
Review and agree manager’s ESG risk framework
Review and agree ESG risk limits at athe portfolio level (portfolio construction) and other ESG objectives
Review how ESG materiality is evaluated by the manager
Review process for defining and communicating on ESG incidents
Review and agree ESG reporting frequency and detail
Other, specify
None of the above

If you select any 'Other' option(s), specify

Schroder Adveq assesses a manager’s ability to align their investment approach with our investment strategy, by conducting a detailed assessment of each historical portfolio company’s financial, operational and ESG profile and developments and the impact the manager had on the company’s performance and ESG approach.  In addition, we examine the firm and its target investment strategy’s viability on a go forward basis to establish confidence in investment execution capabilities and market dynamics to support our ESG and risk/return expectations.

We review the manager’s ability to identify and manage ESG risks and opportunities through staffing, training and organisational commitment to ESG.  The assessment includes understanding the manager’s availability and use of ESG resources and expertise within the firm, availability and use of outside ESG resources and expertise, lines of reporting and incentive structures for manager’s staff on ESG issues and management, and the training on ESG risks and opportunities for manager’s staff.

02.3. Indicate the selection process and its ESG/RI components

          Schroder Adveq incorporates its ESG assessment throughout the investment practice beginning with the screening of new fund investment opportunities. The focus of the firm’s ESG assessment is to determine the adoption level and adherence a manager has to responsible investing and ESG principles throughout its organization and its investment practice.  This requires us to analyse each historical investment made by the manager to understand the ESG risk profile of the company and how the manager may have impacted the company’s adherence to ESG principles in its business.  This analysis requires direct interaction with the manager and as needed independent research and diligence to gain an independent assessment of the ESG risks and impact.
        

02.4. When selecting external managers does your organisation set any of the following:

ESG performance development targets

ESG score

ESG weight

Real economy influence

Other RI considerations

None of the above

Private equity
ESG performance development targets
ESG score
ESG weight
Real world economy targets
Other RI considerations
None of the above

If you select any 'Other' option(s), specify

Schroder Adveq suggests RI goals for the manager to further their RI adoption and implementation.

02.5. Describe how the ESG information reviewed and discussed affects the selection decision making process.[OPTIONAL]

          The ESG assessment has a material impact on whether an investment is approved.  The investment committee seeks to ensure that based on the information gathered in due diligence the prospective manager is receptive to responsible investing concepts and does not pose an ESG risk for our portfolios.
        

SAM 03. Evaluating engagement and voting practices in manager selection (listed equity/fixed income) (Not Applicable)


Top