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MAPFRE, SA

PRI reporting framework 2020

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

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%
70 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
5 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
3 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
22 %
Total actively managed listed equities 110%

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

We choose screening as a starting strategy due to its relatively low difficulty to apply to the widest range of equities, and so to reach the highest part of our portfolio as quickest as possible. Then, we started to develope more complex strategies and to implement them. We're in such a proccess, and that's why the percentage of listed equity covered by other strategies is still relatively low, but growing quickly.

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

First, we apply a two way strategy: "A priori" and "A posteriori" analysis. The "A priori" can be integration or thematic, and the "A posteriori" is screening.

For the "A priori" analysis we apply an integrated research methodology, based on the Integral Value Approach developed by our partners at La Financiere Responsable. This combines the fundamental analysis with propietary data gathered through surveys to the companies. This way, we do not only evaluate the ESG data by itself, but also its consistency with the strategy and financial data of the company. This is a pretty unique approach,

When the "A priori" is a themativ approach, we have developed a propietary methodology for the assessment of the quality of gevernance; it's a givernance specific fund. And we're developing a social one, but not yet implemented.

The "A posteriori" screening is based on several different providers of ESG data, so we we make sure that the selected companies in the "A priori" stage are not among the lowest scores.


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


LEI 03. Information from engagement and/or voting used in investment decision-making (Not Applicable)


(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

In our policy (see OO section) there is an annex for the exclusion of carbon related activities. 

Screened by

Description

Our "A posteriori" screening is based on ESG scores of three external providers (RobecoSAM, Sustainalitycs and Reprisk). We compute a weighted average through a propietary method, though the most weight is usually given to Reprisk data. With such data, we select those in the lowest quartile and ask for a second look in the "A priori" proccess. If this stage still suggests to invest, the case is taken to a risk committee, who will decide on the investment.

Same proccess is applied to every position already in the portfolio.

With the new strategy MIR, we select companieswith best practices in people with disabilities issues.

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

Depending on who the client is:

For the group portfolios, the changes are reported at the risk committee and the investments committee of the group.

For external institutional clients, changes are reported at the regular committees we hold with them, usually on a monthly basis.

For retail clients, up to now the report is only when requested, but we're working on a standarised ESG report for retail clientes that will be up and running before year end.


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.

05.5. Additional information. [Optional]


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


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

We are running three funds this way. One is a general purpose "sustainbaility" fund, the Capital Responsable. It's a mixed portfolio, which equities and corporates part is managed under the Integral Value Approach criteria, whereas the SSA'a part is managed under our own propietary methodology (see FI section).

Another fund we're running is the Good Governance Fund, with a propietary methodology, focused on the sustainability of companies based on the quality of their governance. 

Finally, we have the MIR (see above)


(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]


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.

09.5. 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 (Private)


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