This report shows public data only. Is this your organisation? If so, login here to view your full report.

Wellington Management Company LLP

PRI reporting framework 2020

Export Public Responses
Pdf-img

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

資産配分におけるESG問題

SG 13. ESG issues in strategic asset allocation

13.1. 貴社組織がシナリオ分析および/またはモデリングを実施するか記述してください。実施する場合、 シナリオ分析について説明してください(資産クラス別、セクター別、戦略的資産配分等)。

25語以内で説明してください 。 Transition: Trucost compares portfolio’s energy generation mix to various scenarios based on targets set by external organizations (i.e. OECD). CS Holt facilitates carbon price sensitivity analysis. Physical: Woods Hole Research Center collaboration model scenarios based on RCPs & collection of climate models (CMIP5) with varying sensitivity to climate inputs.

13.2. 組織が戦略的な資産配分やセクターまたは地理的な市場間での資産の配分においてESG問題を考慮しているかどうかを記載してください。

以下を行っている

13.3. 補足情報 [任意]

SG 13.1

Transition: Scenarios vary by maximum warming projected (e.g. 2, 4 C) and the timeframe to achieve the target. These scenarios enable a greater understanding of the portfolio's exposure to future climate policies required to achieve national climate plans. Portfolio managers are increasingly considering climate risks in their long-term sector allocations.

Physical: We leverage findings from our collaborative research with Woods Hole Research Center (WHRC) to consider sector and region vulnerabilities to climate variables. With these scientific findings, we are investigating the most vulnerable regions, working with investors to evaluate investment categories whose asset prices are most likely to be impacted according to the scenario analysis. We are also partnering with clients to integrate physical risk considerations into strategic asset allocation (SAA).

SG 13.2

Our Investment Strategy team engages with physical climate risk research and has used insights from this research to inform SAA for insurers in particular.  We have noted lower long-term expectations for emerging markets relative to broadly held assumptions. One issue we are grappling with is the observation that the most vulnerable regions are also those that most need the capital to invest in solutions. This is work in progress.


SG 13 CC.


SG 14. Long term investment risks and opportunity

14.1. 一部の投資リスクと機会は長期トレンドの結果として発生します。貴社では、以下のどの項目について考慮するか明示してください。

14.2. 気候に関するリスクと機会に対応して組織で実施されている活動を選択してください。

低炭素関連および気候変動に強いポートフォリオ、ファンド、戦略または資産クラスに投資されている運用資産(AUM)を明示してください

Total AUM
10億 100万
Currency
Assets in USD
10億 100万

使用された枠組みまたは分類法を明示してください

Reflects AUM as of 31 December 2019 for 

  • Climate Strategy: a global equity portfolio designed to help address carbon and sustainability under-investment in a targeted approach that delivers both environmental and financial returns on capital. This strategy is focused on climate change mitigation and adaptation through five broad sustainability categories: low carbon electricity, energy efficiency, water and resource management, low carbon transport, and resilient infrastructure.
  • Low Carbon Platform: an emerging markets equity portfolio managed by Wellington’s Quantitative Investment Group whose objective is to maximize net-of-cost alpha relative to risk while conforming to a specific set of carbon-intensity constraints

This number also includes strategies whose footprints are at least 25% lower than their respective benchmarks as of 31 December 2019. This assessment was made based on weighted average carbon intensity for both equity and fixed income strategies. The strategies assessed represent a subset of our total strategy platform, with a focus on those with significant scale and client/prospect interest.

具体的に記入してください

          Offer more investment strategies that aim to help our clients address challenges like the low-carbon transition through mitigation, adaptation, and resilience.
        

14.3. 次のツールの中から気候関連リスクと機会の管理に組織が用いているものを選択してください。

その他(具体的に記入してください)

          Physical risks, both chronic and acute
        

14.4. 排出量リスクの開示を選択した場合、採用している開示方法またはそのフレームワークの中で気候関連のものを挙げてください。

  • Task Force on Climate-related Financial Disclosures (TCFD): We believe the TCFD's recommendations are the emerging standards for comparable, reliable, efficient climate-risk disclosure that can help lenders, insurers, and investors make better decisions. The recommendations provide a non-prescriptive framework that corporations and asset managers can adopt in a manner that speaks to their overall climate-adaptation strategy by disclosing details about four key elements: governance, business impact assessment, risk management processes, and metrics selection.
  • CDP Climate Change annual questionnaires, via CDP Investor Dashboard: By reviewing CDP (formerly known as Carbon Disclosure Project) disclosure of individual companies through a dashboard created internally by our Investment Science team, the teams identify companies that have implemented internal carbon pricing (also known as project screening value) and compare the values being used across peers and geographies. Importantly, this is supplemented by engagement dialogue with companies, where we ask for examples where this internal price has influenced capital allocation decisions and ask about companies’ expectations for future policy direction that would impact their business.
  • P-ROCC: We are also contributing to the development of disclosure standards where we have identified gaps. Based on our research with Woods Hole Research Center, we have found that many companies overlook and/or underreport climate-related physical risks that can be material and important to disclose to stakeholders. In September 2019, we published our P-ROCC (physical risks of climate change) framework, which seeks to improve how companies disclose their physical vulnerabilities, importantly we thereby help asset owners and investment managers better evaluate the ability of the companies they invest in to adapt to or mitigate such risks. We believe the P-ROCC framework may help executive teams with their strategic planning and communication around potential climate effects on their business lines. Wellington investors and members of CalPERS’s sustainable investment team have been sharing the document to companies through engagement, and while it is too early to assess adoption of the framework in their own disclosures, we have found companies to be quite receptive to enhanced guidance.
  • Carbon footprint reporting for investment strategies: We are able to measure the carbon footprint of the specific investment strategies in which our clients are invested and are happy to provide this information upon request. We currently use S&P Trucost and MSCI ESG for this analysis.

14.5. 補足情報 [任意]

While there is still much to be resolved in terms of implementation, the Paris Agreement signaled a clear global desire to move toward renewable energy and energy efficiency. We expect that the Paris Agreement will translate into country-level policy changes aimed at addressing carbon emissions and encouraging mitigation strategies, and we expect an increase in policies and market environments that favor more carbon-friendly businesses. While timing and scope of efforts may be uneven, we anticipate policymakers will produce clearer road maps and emission-trading schemes in the future that we believe will have investment implications for carbon-intensive industries. Moreover, despite the absence of universal policies, more companies are seeing the low-carbon transition as a competitive opportunity. Businesses that invest in resource efficiency across the supply chain will likely gain competitive advantages as more local and regional governments introduce various penalties and incentives, including carbon pricing. A proactive strategy should benefit a company's bottom line and reduce the cost of adhering to future regulation.

Climate change implications are not just long-term considerations. There are also many questions regarding current and near-term effects that need to be addressed, such as: Which coastal real estate is exposed to fat-tail climate change risks? Is disaster insurance mispriced? Which municipal bonds hold climate change-related risks? What is the impact of extreme temperatures and weather volatility on various commodities and supply chains?

Our portfolio managers and the ESG Research team see a range of potential investment opportunities emerging as efforts to address climate change continue to advance.

  • Renewables: With renewable energy becoming mainstream, the day is quickly approaching when wind and solar may no longer be thought of as "alternative" power sources. Industry watchers expect that more than 50% of incremental electricity capacity will come from renewable sources over the next five years. While the shift presents potential opportunities for renewable energy providers, it may pose challenges for incumbent power generators.
  • Energy storage: The current inability to store electricity causes significant inefficiency on power grids and heating and cooling systems. Large-scale energy storage has the potential to fundamentally alter the energy sector and generate value. Utility-scale batteries could enable wind farms and solar arrays to store electricity when demand and costs are low, and dispatch it when demand and costs rise.
  • Electrification: Across the transportation spectrum, vehicles and their supporting infrastructure are transitioning from fossil-fuel combustion to electric power. The worldwide shift of personal and commercial vehicles, railways, and cargo ships to electric presents a significant climate-risk mitigation opportunity, as mobile sources produce 14% of global emissions. In anticipation of rising demand, vehicle manufacturers have committed significant capital to the research and development of electric vehicles. Ultimately, however, the overall mitigation effect of low-carbon transport depends as well on changes in the global fuel mix and improved battery capacity.
  • Energy efficiency: Companies in every sector are seeking ways to reduce energy usage and the associated operational costs. Energy efficiency solutions such as light-emitting diode (LED) lighting and advanced heating and cooling systems have gained commercial traction as a result. The manufacturers of these technologies that help lower customers' carbon footprint along with their energy bills should be well positioned.
  • Infrastructure: Even if the guidelines set out in the Paris Agreement are met, the world will still need to make additional investments in infrastructure design to adapt to a changing climate. Local governments will likely require flood-management installations including floodwalls, bioswales, and permeable pavements to help minimize the effects of flooding following extreme precipitation events. A warmer planet is already increasing water-scarcity concerns. By 2030 global water demand is set to surpass supply by 40%, yet countries have underinvested in water management for decades. New infrastructure, including pipelines, plumbing, meters, and sanitization facilities, should become critically important in many areas of the world. Innovative water management solutions can also help reduce water consumption, ultimately lessening the strain on existing water infrastructure.
  • Real estate: How and where structures are built are two key considerations for climate-aware investors. Commercial and residential real estate constitutes approximately 40% of energy consumption. New methods and technologies used in building construction and system design are lowering the carbon footprint. Some studies have shown that "green" buildings that offer better air and light quality help boost worker productivity. Climate change will also impact the cost of real estate in places that are susceptible to volatile weather patterns. We expect that higher insurance premiums and infrastructure improvements needed to protect communities from climate change will alter the building-cost paradigm and may lead to new population migration patterns.
  • Green bonds: Finally, the rise of green bonds has the potential to serve as an opportunity for investors to finance the transition to a lower-carbon economy. The proceeds from the green bond market are earmarked for environmentally friendly projects, such as renewable energy, climate adaptation infrastructure, and energy efficiency. Experts have estimated that it will take US$93 trillion worth of investments to meet the targets for addressing climate change. Green bonds are one way for private pools of capital to contribute to the financing of this transition. We believe this is a growing market with potential to serve as a meaningful tool to help reach the goals of the Paris Agreement.

As we assess potential climate risks to our operations, examples of climate-related risks identified include disruption to our power supply due to severe storms and flood risks due to the combination of severe weather events and rising sea levels. Improving the energy efficiency of our facilities, including our data centers, is an example of an opportunity we have identified.

Please refer to SG 13 and SG 13 CC for additional detail.


SG 14 CC.


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

15.1. 貴社にて、特定の環境および社会をテーマとする分野に基づいてファンドに資産を配分したり、ファンドを運用しているかどうかについて明示してください。

15.2. 環境および社会をテーマとする分野に投資された合計運用資産(AUM)の割合を明示してください。

8 %

15.3. 貴社が投資しているテーマ分野を明示のうえ、AUMに対する特定の資産クラスの割合を記載し、その内容を簡潔に説明してください。

分野

投資している資産クラス

.73 % (AUMの)
.05 % (AUMの)
.25 % (AUMの)
.15 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

投資している資産クラス

.25 % (AUMの)
.04 % (AUMの)
.12 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

投資している資産クラス

.25 % (AUMの)
.02 % (AUMの)
.12 % (AUMの)
.04 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

投資している資産クラス

.21 % (AUMの)
.07 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

投資している資産クラス

.12 % (AUMの)
.02 % (AUMの)
.01 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

投資している資産クラス

.12 % (AUMの)
.02 % (AUMの)
.01 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

投資している資産クラス

.17 % (AUMの)
.16 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

投資している資産クラス

.24 % (AUMの)
.17 % (AUMの)
.02 % (AUMの)
.04 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

投資している資産クラス

13.3 % (AUMの)
.18 % (AUMの)
2.6 % (AUMの)
1.63 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

投資している資産クラス

.09 % (AUMの)
.02 % (AUMの)
.06 % (AUMの)

簡潔な説明および投資尺度

Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

          Digital Divide, Safety & Security, and Multi-Theme
        

投資している資産クラス

1.39 % (AUMの)
1.28 % (AUMの)
.12 % (AUMの)

簡潔な説明および投資尺度

​Reflects the 31 December 2019 market value of firmwide holdings in companies that have been internally identified as eligible for our impact investing universes for both equity and fixed income.

15.4. 含めたい補足情報があれば、添付してください。 [任意] 



Top