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Optimum Asset Management Inc

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%
100 %
Total actively managed listed equities 200%

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

Optimum Asset Management uses where we have vowed to exclude sectors/companies with specific revenue generation from our investment portfolios.

Along with the industry, OAM takes part in making issuers aware of ESG factors and distances itself from certain industries by expressly excluding the following from its portfolios:

  • Coal: Companies that obtain more than 25% of their revenues from coal-fired power plants. Moreover, any such company must have demonstrated that it has reduced its greenhouse gas (GHG) emissions in recent years and that it plans to continue to do so;
  • Tobacco: Companies that obtain more than 10% of their revenues from the manufacture of tobacco products;
  • Weapons: Any company involved in the manufacture and sale of antipersonnel mines, cluster munitions or biological or chemical weapons in contravention of international humanitarian law.

We use positive screening where we select companies with better greenhouse gas emissions. We calculate greenhouse gas emissions for every company and we compare the portfolio with the index.

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

ESG integration is used on all companies that are analyzed. An annual review of the percentage of revenue generated by the companies in flagged sectors gives us the necessary information to use our screening strategy. The information found in the screening is added to the ESG integration. We expressly exclude the following from its portfolios:

  • Coal: Companies that obtain more than 25% of their revenues from coal-fired power plants. Moreover, any such company must have demonstrated that it has reduced its greenhouse gas (GHG) emissions in recent years and that it plans to continue to do so;
  • Tobacco: Companies that obtain more than 10% of their revenues from the manufacture of tobacco products;
  • Weapons: Any company involved in the manufacture and sale of antipersonnel mines, cluster munitions or biological or chemical weapons in contravention of international humanitarian law.

In addition, when selecting equities, we integrate good governance and low leverage aspects to our screening criteria.


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


LEI 03. Information from engagement and/or voting used in investment decision-making (Private)


(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

The Optimum Canadian Equity strategy screens several factors, including ESG factors, to better manage active listed equities. Non-financial responsible-investment considerations are among the criteria used to select securities for the portfolio. OAM therefore uses external consultant services to assess the risks related to ESG factors.

The application of these factors varies from one sector of activity to another and will change over time.

Along with the industry, OAM takes part in making issuers aware of ESG factors and distances itself from certain industries by expressly excluding the following from its portfolios:

  • Coal: Companies that obtain more than 25% of their revenues from coal-fired power plants. Moreover, any such company must have demonstrated that it has reduced its greenhouse gas (GHG) emissions in recent years and that it plans to continue to do so;
  • Tobacco: Companies that obtain more than 10% of their revenues from the manufacture of tobacco products;
  • Weapons: Any company involved in the manufacture and sale of antipersonnel mines, cluster munitions or biological or chemical weapons in contravention of international humanitarian law.

Screened by

Description

The Optimum Canadian Equity strategy screens several factors, including governance factors, to better manage active listed equities. Non-financial responsible-investment considerations are among the criteria used to select securities for the portfolio.

Optimum Asset Management measures the carbon footprint of its Canadian equity portfolios and compares the result with the index in order to remain systematically better.

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

Any significant change in the screening criteria is discussed at client meetings.


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.

          ESG Committee reviews watch list and prohibited list of securities updated
        

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


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


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