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C WorldWide Asset Management

PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities

ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
100 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.

Our overall process of integrating ESG factors into our investment process is multi-faceted and is anchored by a combination of both internal and external research inputs. ESG integration does not begin or end with the purchase of a company’s stock. Our ESG commitment is continuous, supported by ongoing screening and monitoring.

It is important to note that ESG considerations are fully integrated into our investment process because all stock specific ESG considerations are made by the portfolio managers themselves and the relevant portfolio decision teams. ESG portfolio and stock considerations are therefore not outsourced to external teams or individuals. There is full ownership with the portfolio managers themselves.

ESG research is fully incorporated into the investment process, in-line with other external research providers. ESG research raises awareness and offers relevant insights into the key issues which arise. Any controversial issues which may arise are then analysed and assessed by the portfolio managers on a case by case basis. The overall decision-making process will be a holistic one, as fundamental financial analysis will be supplemented by ESG and other non-financial factors.

All investments / shares are screened for violations of international norms and conventions. This norm-based screening process ensures that all our investments are monitored and assessed so that they can at all times live up to what is generally assumed to be the general society's minimum requirements and expectations for ESG.

The C WorldWide Global Equities Ethical Fund is also subject to a value-based screening / exclusion in order to enable investors to opt out of investments with controversial business activities.

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

Please see above.


LEI 02. Type of ESG information used in investment decision

02.1. Indicate what ESG information you use in your ESG incorporation strategies and who provides this information.

Type of ESG information

Indicate who provides this information  

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

02.2. Indicate whether you incentivise brokers to provide ESG research.

02.3. Describe how you incentivise brokers.

Our continuous focus and integration of ESG and RI in our investments naturally leads to a request with the sell-side research analysts we engage with. Many of these analysts are taking ESG into consideration in their research and we can only support this for further development going forward.

02.4. Additional information. [Optional]


LEI 03. Information from engagement and/or voting used in investment decision-making

03.1. Indicate whether your organisation has a process through which information derived from ESG engagement and/or (proxy) voting activities is made available for use in investment decision-making.

03.2. Additional information. [Optional]


(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

The C Worldwide Global Equities Ethical fund applies negative screening for weapons, tobacco, alcohol, adult entertainment, gambling, and thermal coal, oil and gas in combination with norm-based screening.

Screened by

Description

The norm-based screening is applied to all listed equities held across our portfolios.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

When changes are made to screening criteria, formal documents would be updated and distributed to relevant clients as well as being made publicly available via e.g. prospectus and website.

 


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]

The norm-based screening process is ARISTA quality certified.


LEI 06. Processes to ensure fund criteria are not breached

06.1. Indicate which processes your organisation uses to ensure fund criteria are not breached.

06.2. If breaches of fund screening criteria are identified, describe the process followed to correct those breaches.

The C WorldWide Global Equites Ethical fund will divest, if stocks are found not to meet the screening criteria.

For the remaining listed equities, engagement is conducted if the screening process has identified a violation of international norms and conventions. The controversies or norm breaches are continuously considered and re-assessed. If this ongoing engagement does not result in any improvement with the specific company, we would most likely disinvest.

06.3. Additional information. [Optional]


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

We believe that a strong ESG company profile typically, if not always starts with the "G" - i.e. Governance. Good corporate governance is typically anchored with good company managements. A good corporate governance foundation is the key steppingstone to a good ESG profile. In order for companies to improve their Social and Environmental agenda they require, first and foremost, a robust Governance framework.

ESG factors make a difference and we believe that there is no conflict between returns and sustainability. We believe that sustainable and responsible investments are drivers for higher, longer term returns at a lower risk. Understanding ESG information leads to a better understanding of a company's sustainability profile and ESG considerations can therefore be material in the investment decision making process.


LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information. [Optional]


LEI 10. Aspects of analysis ESG information is integrated into

New selection options have been added to this indicator. Please review your prefilled responses carefully.

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis.

10.4. Describe the methods you have used to adjust the income forecast/valuation tool.

We risk-adjust our discount rates in DCF models with ESG issues. Companies with a weaker ESG profile should trade at varying degrees of valuation discounts. Vice-versa, companies with stronger ESG profiles, are valued at a premium in our valuation forecast tools.

10.6. Additional information. [OPTIONAL]


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