04.2.
Provide an example per asset class of your benchmarks, objectives, incentives/controls and reporting requirements that would typically be included in your managers’ appointment.
Asset class
Benchmark
Incentives and controls
Benchmark
ESG Objectives
for example, identification of positioning of the strategy, e.g., do no harm, benefit stakeholders, contribute to solutions
for example, exclusion of companies involved in
i) the production and selling or trading of nuclear weapons;
ii) the production and selling or trading of tobacco or cannabis;
iii) operations related to thermal coal and oil sand; and
iv) the production and selling or trading of cluster munitions and mines.
for example, ensuring sustainability/ESG risks and opportunities are an integrated part of the investment evaluation of the manager, including climate related risks (in line with TFCD)
for example, the manager needs to confirm it will use commercially reasonable efforts to proactively identify and manage sustainability related risks and opportunities in the Fund and Investments, as part of the governance and management of the Investments.
for example, we encourage managers to be signatories of the PRI, to support and report in line with TFCD and GRESB (real estate and infrastructure), OECD guidelines for MNEs
Incentives and controls
Benchmark
Incentives and controls
Benchmark
Incentives and controls
04.4.
Provide additional information relevant to your organisation`s appointment processes of external managers.
[OPTIONAL]
ESG is part of the overall valuation, follow up, monitoring.