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STANLIB Asset Management Ltd

PRI reporting framework 2019

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 - Corporate (non-financial)

ESG is integral to our investment process and the credit investment decision is both qualitative and quantitative. 

The Fixed Income team applies a negative screening to companies that engage in:

• Production or activities involving harmful or exploitive forms of labour;

• Any form of child labour;

• Manufacture of weapons, weapons support or warfare systems for terrorist related activities;

• Production and/or distribution of narcotic drugs;

• Production and/or trade of any product or activity deemed illegal by laws, regulations and/or international conventions (animal poaching, illegal harvested timber; environmental pollution, oil operations, pornography, etc.);

• A history of serious health and safety breaches;

Governance accounts for the majority of the weighting within our scoring methodology as the team believes that the management team will dictate the Social and Environmental policies of the company.  An Issuer must pass the minimum score levels required from our internal qualitative ESG assessment for an investment recommendation

Where the score is low, we engage directly with the management team to note our concerns and if no appropriate action is taken by the management we will also engage with other STANLIB investment teams to voice via proxy voting.

Infrastructure

ESG factors are considered in project appraisal, due diligence and investment decisions.  ESG factors are tracked and reported to investors on a semi-annual basis.  In some instances, the team is represented on the board sub-committee for ESG issues or on the respective community trusts.

Money market instruments

ESG is integral to our investment process and the credit investment decision is both qualitative and quantitative. 

The Fixed Income team applies a negative screening to companies that engage in:

• Production or activities involving harmful or exploitive forms of labour;

• Any form of child labour;

• Manufacture of weapons, weapons support or warfare systems for terrorist related activities;

• Production and/or distribution of narcotic drugs;

• Production and/or trade of any product or activity deemed illegal by laws, regulations and/or international conventions (animal poaching, illegal harvested timber; environmental pollution, oil operations, pornography, etc.);

• A history of serious health and safety breaches;

Governance accounts for the majority of the weighting within our scoring methodology as the team believes that the management team will dictate the Social and Environmental policies of the company.  An Issuer must pass the minimum score levels required from our internal qualitative ESG assessment for an investment recommendation

Where the score is low, we engage directly with the management team to note our concerns and if no appropriate action is taken by the management we will also engage with other STANLIB investment teams to voice via proxy voting.

16.2. Additional information [Optional].


SG 17. ESG issues for externally managed assets not reported in framework (Not Applicable)


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