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EDM

PRI reporting framework 2020

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

アクティブ運用している上場株式におけるESGの組み入れ

実施プロセス

LEI 01. Percentage of each incorporation strategy

01.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
100 %
アクティブ運用している上場株式の合計 195%

01.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

Based on the definitions provided for this section of the questionnaire, we have responded with both "screening" and "integrated". EDM takes a risk-based approach to ESG evaluation. EDM's investment process is characterized by in-depth research, analysis and knowledge of target companies. It uses a rigorous approach to identify quality companies that should be capable of generating above average growth on a sustained basis and it is reflected in concentrated portfolios and essentially high risk aversion. 

As long-term and responsible investors we look for quality companies which are able to provide sustainable returns over the long term. EDM equity funds resides in identifying ESG risks and opportunities of investee companies. This approach offers a broader and complementary assessment of companies in addition to information provided by the traditional fundamental financial analysis.

Across all of its strategies the firm examines and weighs environmental, social  and governance challenges which can create undue risk to investor capital. Environmental, Social and Governance (ESG) criteria are based on the concepts of sustainable development and Corporate Social Responsibility (CSR), additionally exclusions are decided on a case-by-case basis in the investment team meetings.

EDM Investment team sets or revises goals for responsible investment and EDM also review performance against its objectives for responsible investment. Chief Investment Officer (CIO), Investment Committee, Portfolio managers, Investment analysts and dedicated responsible investment staff, all of them have oversight and implementation responsibilities for responsible investment to ensure that EDM’s objectives and values are maintained in all its business pursuits.

01.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]

The screening and integration process is implemented on 95% of the Assets under Management. The other 5% is managed by an external agent (Edgewood Management) based in US where it is not mandatory an ESG agreement, although its strategy remains on traditional fundamental financial analysis looking for quality companies based on responsible investment. Edgewood Management corroborates that they do not invest in companies deriving their main revenues from alcohol, tobacco, armament and controversial weapons.


LEI 02. Type of ESG information used in investment decision (Private)


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


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

Following its commitment to responsible investment and the integration of Environmental, Social and Governance (ESG) factors, Firtsly, EDM has adopted a policy that exclude companies deriving their main revenues from controversial weapons, pornography and gambling. 

However, all exclusions depends on a case-by-case basis:

EDM’s responsible investment policy does not make any a priori exclusions ahead of the definition of investment universes.

EDM’s selection process makes it unlikely that a company whose practices are doubtful in certain regards can satisfy the required standards of quality, visibility and sustainability.

Secondly, EDM has an internal policy that describes our internal methodology. The investment team analyze each company of our Portfolio according to our internal criteria on Environmental (active policy on reducing CO2 emissions, carbon footprint), Social (active policy concerning gender diversity), Governance (board members, % independent members, family/Board ownership) and finally we set an internal rating for each company that we usually compare to Sustainalytics score. According to that, if it is necessary we contact the company in order to obtain more data. So it is fundamental to EDM to practice Engagement, 

Our next step is to improve in-depth analysis and incorporate additional internal criteria.

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。

Our responsability towards our clients, our employees, the environment and society has been one of the pillars of our business and it has been integrated within the asset management company's fundamentak analysis. EDM has gradually developed and implemented its own responsible investment philosophy and shall maintain this course over the long term to remain a responsible entity.

Regarding exclusionary screening, new incorporations in the investment universe will be discussed on a case-by-case basis in the investment team meetings. EDM is always ready to consider a solution for clients that will respond to their requirements in this area.

The criteria are reviewed annually and EDM can notify the strategy/criteria to its clients whenever they want despite not being public.


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。

05.4. 組織のESGスクリーニングを構築するための組織内リサーチを精査する頻度を示してください。

05.5. 補足情報 [任意]

We review ESG screens annually, however the internal research is reviewed at each meeting of the investment team.


LEI 06. Processes to ensure fund criteria are not breached (Not Completed)


C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. E・S・Gの各要因が投資分析の一環として体系的に調査されている、アクティブ運用の上場株式ポートフォリオの割合を記載してください。

ESG問題

影響を受ける割合
E(環境)

E(環境)

S(社会)

S(社会)

コーポレートガバナンス

コーポレートガバナンス

08.2. 補足情報 [任意]


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

09.1. ESG統合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記載してください。

09.2. 組織の統合戦略の一環で包括的ESG調査の対象になるアクティブ運用上場株式の割合を記載してください。

09.3. ESG統合戦略に使われる第三者のESG評価が更新される頻度を示してください。

09.5. ポートフォリオ・マネージャーがどのようにしてESG情報を保有し、使っているのか説明してください。

09.6. 補足情報 [任意]


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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