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Joseph Rowntree Charitable Trust

PRI reporting framework 2020

You are in Strategy and Governance » ESG issues in asset allocation

ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

13.1. Indicate whether the organisation carries out scenario analysis and/or modelling, and if it does, provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

13.3. Additional information. [OPTIONAL]

We expect our fund managers to execute scenario analysis and/or modelling to assess ESG factors and to assess future climate-related risks and opportunities.  We are too small an organisation to do this work ourselves.


SG 13 CC.


SG 14. Long term investment risks and opportunity

14.1. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following are considered.

other description (1)

          Improvements in diversity in management.
        

other description (2)

          Human rights and societal intolerance.
        

14.2. Indicate which of the following activities you have undertaken to respond to climate change risk and opportunity

Specify the AUM invested in low carbon and climate resilient portfolios, funds, strategies or asset classes.

Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

Specify the framework or taxonomy used.

By the end of 2017 we had totally divested from fossil fuel extractive companies.

Although by investing sustainably we expect to invest in in low carbon and climate resilient portfolios, funds, strategies and asset classes, we also invest in  funds which explicitly invest in companies seeking environmental solutions through their products.

14.3. Indicate which of the following tools the organisation uses to manage climate-related risks and opportunities.

14.5. Additional information [Optional]

We expect all our fund managers to use a variety of tools, including those listed above, to manage and model climate-related risks as part of their decision making process and to strive for long term carbon reduction.

When appointing new external managers, the carbon impact  of their portfolios always at the forefront of our discussions with them and we would not appoint or retain a manager who was not able to demonstrate both an appreciation of these issues and a strong commitment to sustainability. For this reason, all the funds in which we invest tend to have a relatively low carbon footprint and they typically exclude fossil fuel extractive companies, petrol and diesel car manufacturers or airlines. We do not specifically ask for emissions-risk monitoring and reporting within our contracts with our fund managers since, given the low relative level of risk in these areas for our portfolios, we would prefer to prioritise other matters. Instead we prefer to carry out, on an ongoing basis an all-encompassing evaluation of each of our external managers to ensure that their overall approach is compatible with our investment aims and objectives including those relating to climate change.


SG 14 CC.

14.6 CC. Provide further details on the key metric(s) used to assess climate-related risks and opportunities.

Metric Type
Coverage
Purpose
Metric Unit
Metric Methodology
Climate-related targets
          
        
          
        
          
        
Carbon footprint (scope 1 and 2)
          To measure the relative carbon footprint of our funds against benchmark and year on year.
        
          Varies between fund manager.
        
          
        
Portfolio carbon footprint
          To measure the relative carbon footprint of our portfolio against benchmark and year on year.
        
          Combination of measurements to reflect those used by our fund managers.
        
          
        
Exposure to carbon-related assets
          
        
          
        
          
        

14.7 CC. Describe in further detail the key targets.

Target type
Baseline year
Target year
Description
Attachments
          
        
          
        
          
        

          
        
          
        
          
        

          
        
          
        
          
        

          
        
          
        
          
        

          
        
          
        
          
        

14.8 CC. Indicate whether climate-related risks are integrated into overall risk management and explain the risk management processes used for identifying, assessing and managing climate-related risks.

Please describe

We expect our fund managers to have processes to integrate climate-related risks into overall risk management.

14.9 CC. Indicate whether your organisation, and/or external investment manager or service providers acting on your behalf, undertake active ownership activities to encourage TCFD adoption.

Please describe

We expect our fund managers to undertake active ownership activities to encourage TCFD adoption.


SG 15. Allocation of assets to environmental and social themed areas

15.1. Indicate if your organisation allocates assets to, or manages, funds based on specific environmental and social themed areas.

15.2. Indicate the percentage of your total AUM invested in environmental and social themed areas.

8.0 %

15.3. Specify which thematic area(s) you invest in, indicate the percentage of your AUM in the particular asset class and provide a brief description.

Area

Asset class invested

8 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

We are invested in the Impax Asian Environmental Markets (Ireland) and Impax Environmental Markets PLC funds. The funds specifically invest in companies that provide environmental solutions through their products or services.

Our other funds also have some investments in these areas but they are not included in the above figures.

Asset class invested

1 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

We are invested in Ethical Property Company, Ethical Property Europe and Social Justice and Human Rights Centre. These companies support groups working for social change by supplying office space and communal working facilities in an ethical and environmentally aware way.

Asset class invested

1 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

See green buildings above.

15.4. Please attach any supporting information you wish to include. [OPTIONAL]



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