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Generation Investment Management LLP

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

投資ポリシー

SG 01. RI policy and coverage

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。

01.1. 責任投資アプローチをカバーする投資ポリシーを策定しているかどうかを明示してください。

01.2. ポリシーの構成要素/種類と対象範囲を示してください。

当てはまるものをすべて選択してください。
ポリシーの構成要素/種類
AUMの対象範囲

01.3. 投資ポリシーが以下のどの項目をカバーしているか明示して下さい:

01.4. 組織の投資原則および全体の投資戦略、受託者義務(または同等のもの)の解釈、ならびに、ESGファクターおよび実体経済の影響をどのように考慮に入れているかについて説明してください。

Generation's disciplined investment process fully integrates sustainability analysis in order to enhance our ability to deliver risk-adjusted returns over the long-term. We believe incorporating a broader spectrum of factors, including ESG issues, within our investment analysis allows us to determine the underlying drivers that influence the long-term performance of companies, and gives us the ability to construct concentrated portfolios with high conviction. ESG factors are therefore systematically and explicitly integrated at each stage of the investment process. We apply this approach to 100% of our AUM.

Given our strong conviction in the financial value (or "real economy impact"), of ESG integration, it follows that we believe it is our fiduciary duty to our clients to incorporate them. The Generation Foundation, Generation's advocacy arm, has collaborated with UNEP FI and the UN PRI on the topic of Fiduciary Duty. Please find further information here: https://www.genfound.org/library/.

01.5. 責任投資アプローチをカバーする組織の投資ポリシーの重要な構成要素、バリエーション、例外事項を簡潔に説明してください。[任意]

We consider our investment philosophy and process to be our ESG policy as sustainability is fully integrated into our world-view and investment strategies. Generation Investment Management was founded with the mission of proving the business case for sustainable investing. The Firm’s founders shared the conviction that sustainability insight is a driver of long-term returns, and we have built an investment process that systematically reviews the material ESG factors that affect business and management performance. This integrated investment approach is consistent across the Firm’s strategies.

Furthermore, the integration of sustainability considerations into our investment process is carried out by each of our investment team members. Our team is a diverse group of investment professionals, drawn together by our Firm’s mission and belief that a wider research and analysis lens including ESG factors is the best way to identify attractive risk-adjusted investment opportunities. We view our team’s ability to integrate a sustainability lens into our investment process as a core competency.

01.6. 補足情報 [任意]

          
        

SG 01 CC. Climate risk

01.6 CC. 投資期間において特定され、組織の投資戦略・商品に組み込まれている気候関連のリスクおよび機会について記述してください。

特定された気候関連の移行リスク・物理的リスクおよび機会、ならびに投資戦略・商品にそれらがどのように組み込まれているかを説明してください。(500 語以内で自由に記載)

Our approach has always considered these factors (and others related to sustainability) as part of our core investment thinking and practice. Investing for the long term in high quality companies necessarily requires deep consideration of climate risk and opportunity.

The particular approach we take is tailored according to the company. Individual analysts track all important aspects, with support from our research team. In some cases we conduct deeper research with external partners. For instance, we recently assessed the carbon footprint of different retail models with academics in the US because we could not find a relevant tool.

On the opportunity side of the equation, we look at electrification of mobility and the shift to sustainable diets and food systems, among many others. Meanwhile, the biggest risks to the companies we cover typically lie in the supply chain. For instance, the vast majority of GHG emissions associated with our portfolio are Scope 3.

We are currently conducting an assessment across one of our portfolios with an external partner. This modelling work looks at transition risks and opportunities initially and we plan to look at physical risk in future steps (based on our existing analysis, the impact of extreme weather events on the supply chain and on water security will be important here). This is exploratory work, but we hope to incorporate learnings from this process back into our investment process.

01.7 CC. 組織はそれら気候リスクの可能性および影響を評価しましたか?

これらのリスクおよび機会に関連する時間の尺度について説明してください。(500語以内)

We consider a range of timescales. Climate risk is with us today of course. In our investment work we are looking out in particular to the next 5 to 15 years. It is in this period where we expect many of the risks and opportunities related to transition to play out, although it won’t be the end of the story. We also look well beyond this, given the need to achieve net zero by 2050 at the latest (which in turn relates to the temperature goal for 2100).

01.8 CC. 組織はTCFDを公式に支持しますか?

01.9 CC. 重大な気候関連リスクおよび機会を特定・管理する組織全体の戦略がありますか?

説明してください。

Generation Investment Management (“Generation” or the “Firm”) was founded with the mission of proving the business case for sustainable investing. The Firm’s founders shared the conviction that sustainability insight is a driver of long-term returns, and we have built an investment process that systematically reviews the material ESG factors, including climate change, that affect business and management performance. This integrated investment approach is consistent across the Firm’s strategies. Generation identifies and manages material climate-related risks and opportunities via various initiatives including roadmap research, solutions summits, and the Sustainability Trends Report.  In addition, the Generation Foundation undertakes and supports research that helps to identify and manage material climate-related risks and opportunities.

1.10 CC. TCFD開示を発表するために組織が使用する文書/通信を示してください。

具体的に記入してください。

          In 2019 we reported to our clients on the relative carbon intensity of the investments we manage on their behalf.
        

SG 02. Publicly available RI policy or guidance documents

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。

02.1. 一般に入手できる組織の投資ポリシー文書を記載してください。その文書のURLを記入し、該当文書を添付してください。

URL/添付ファイル

02.2. 一般に入手できる組織の投資ポリシー文書を記載してください。その文書のURLを記入し、該当文書を添付してください。

URL/添付ファイル

URL/添付ファイル

URL/添付ファイル

URL/添付ファイル

02.3. 補足情報 [任意]

As discussed earlier, our whole investment philosophy and mission is a commitment to responsible investment, and serve as a responsible investment policy. The firm was founded with the mission of proving the business case for sustainable investing, with our founders sharing the conviction that sustainability insight is a driver of long-term returns, and we have built an investment process that systematically reviews the material ESG factors that affect business and management performance. Further information on how ESG issues are integrated in our Global (public) equity strategy is disclosed on our website: https://www.generationim.com/strategy/global-equity.html

We also disclose selected highlights of our research to emphasise the business case for integrating ESG research into financial analysis and promote long-term thinking within the capital markets: https://www.generationim.com/research-centre/. Our updated response to the UK Stewardship Code can also be viewed on our website, which details our approach to engagement and our role as responsible long-term investors, as linked above: https://www.generationim.com/media/1495/generation-im-stewardship-code.pdf. We also provide our approach to Stewardship and our Engagement policy on our website https://www.generationim.com/media/1620/generation-im_stewardship-and-engagement-policy_dec-19.pdf.

Our proxy voting guidelines are made available to clients on request. Generation has developed a proxy voting policy which is used to determine a fair and consistent approach to voting company proxies. Generation’s investment analysts use, amongst other information, research material provided by the Institutional Shareholder Services Inc. (“ISS”), but reach voting decisions independent of ISS’s voting recommendations. Generation takes its responsibilities as shareholder very seriously and engages with companies via constructive dialogue as a means of enhancing and protecting our client’s investments. In addition, the analysis of corporate governance directly informs our assessment of the management quality of each company, a factor which Generation believes to be a key driver of strong long-term performance. Generation sees being an engaged shareholder as an integral part of responsible ownership. Generation has appointed ISS as its proxy voting agent to provide notice of all company meetings and to ensure Generation's voting instructions are effectively carried out. As part of this process, Generation provides regular portfolio holding updates to ISS and reconciles its records with those held by ISS to ensure the correct numbers of shares are identified for the ballots. Generation uses ISS as our independent voting service provider because of the depth of research it provides. However, Generation does not automatically adopt global proxy voting rules from any third-party service as a default setting. Generation believes each one of its analysts should review the relevant corporate governance issues on a case-by-case basis and exercise their best judgement given their knowledge of the company concerned. If Separate Accounts have specific voting policies that differ from Generation's and require Generation to vote their proxies, Generation will try to accommodate such policies. Generally, where a Separate Account does not authorize Generation to vote proxies, the Separate Account will receive proxy voting statements directly from their custodian. Where Generation receives “Class Action” documents on behalf of a Fund, Generation will consider such documents and consider whether the Fund should either participate in the Class Action or opt out of any Class Action notices received. Generation shall, however, be under no obligation to act as a “representative” in such an action. Generation will determine if it is in the best interest of the Fund to seek to recover monies from a Class Action. If Class Action documents are received by Generation for a Separate Account, Generation will gather any requisite documentation and information it has received and forward it to the Separate Account owner, or their custodian, to enable them to respond at their discretion.


SG 03. Conflicts of interest

03.1. 組織として、投資プロセスにおける潜在的な利益相反を管理するポリシーを策定しているかどうかについて明示して下さい。

03.2. 投資プロセスにおける潜在的な利益相反を管理するポリシーについて説明してください。

We are committed to compliance with the highest standards of corporate governance and pay due regard to the interests of our clients in managing conflicts fairly, both between ourselves and our clients and between clients. Senior management recognises that conflicts of interest may arise, and we have established a clear policy to manage these conflicts.

We have identified the following principles of good practice 

• Full commitment of senior management to conflict identification and management;

• Business-wide approach encompassing all activities across the Firm;

• Consistent treatment of conflicts of interest;

• Provision of regular management information on the extent and mitigation of conflicts of interest to senior management; and

• Regular review of the types of mitigation.

We are committed to implementing and maintaining an effective conflicts of interest policy appropriate to our organisation and the nature, scale and complexity. As a general rule we will always disclose an actual or potential conflict of interest as a method of managing a conflict, unless doing so will breach a legal or regulatory guideline or would not be in the interests of clients.

Our Conflicts of Interest Policy is available to our clients upon request.

03.3. 補足情報 [任意]


SG 04. Identifying incidents occurring within portfolios

04.1. 組織では、投資先企業において発生するインシデントの特定と管理を行うプロセスを設定しているかどうか明示して下さい。

04.2. インシデントを管理するプロセスを説明して下さい

We seek to invest in high quality businesses run by high quality management teams that are identifying and managing potential risks appropriately.  Incidents are therefore rare at our portfolio companies. We hope that our process leads us away from companies where incidents are likely to occur. That being said if an incident were to occur, we are prepared to engage with management teams, sometimes more publicly if necessary in the case of our public strategies, and via board positions and other touch-points at our private investments.


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