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Robeco

PRI reporting framework 2020

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
SSA
5 Screening alone
0 Thematic alone
0 Integration alone
95 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

Robeco categorises the investment strategies in to three different catagories: Sustainability Inside, Sustainability Focused, and Impact investing. The house view is that screening is applied on all strategies, and the ESG integration is part of the investment decision making in all capabilities where this is possible.

The relative size of the different strategies is driven by client demand. 

01.3. Additional information [Optional].


FI 02. ESG issues and issuer research

02.1. Indicate which ESG factors you systematically research as part of your analysis on issuers.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Environmental data
Social data
Governance data

02.2. Indicate what format your ESG information comes in and where you typically source it

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

02.3. Provide a brief description of the ESG information used, highlighting any differences in sources of information across your ESG incorporation strategies.

Corporate bonds: Our most important ESG information is provided by RobecoSAM, predominantly in the form of company ESG scores and ESG materiality assessments. Additional data sources are Sustainalytics (including the Controversy Ratings) and Glass Lewis. Information is also derived from daily news screening, sell side research, meetings with companies, etc. Based on these data sources Robeco credit analysts make their own assessment of the impact of ESG factors on the issuers.

Government bonds: The country level ESG information that is used in our investment process is provided by our in house specialists at RobecoSAM. These specialists work closely together with the investment team that manages SSA assets. The ESG specialists gather external information which is used as input data for our proprietary RobecoSAM Country Sustainability Ranking. The ESG specialists and portfolio managers together decide on possible new information sources for the Country Sustainability Ranking. For example, we have recently added the Yale Environmental Performance Index and the Social Progress Index (from Social Progress Imperative) to the dataset. A list of external sources is shown in the answer on question FI.02.04.

02.4. Additional information. [Optional]

An overview of the data sources which are used to construct our Country Sustainability Ranking is shown below. These sources provide detailed information on specific environmental, social and governance characteristics. Data sources are predominantly unilateral organizations, NGOs and universities.

For specific topics (e.g. political risk) we purchase external information. This information can be data series that are used as input for our Country Sustainability Ranking (e.g. PRS data), or it can be in depth analysis of the political situation and governance risk (e.g. EurAsia) which is an add on to our own in house analysis of the governance of a country.

Data Sources:

Environmental Status

  • Yale; Environmental Performance Index

 

Energy

  • World Energy Council/Oliver Wyman; Energy Trilemma Index 

 

  • International Energy Agency; World Energy Balances 2019

 

 

Environmental Risk

  • Bündnis Entwicklung Hilft; World Risk Report

 

  • Germanwatch; Global Climate Risk Index

 

Social Indicators

  • Social Progress Imperative; Social Progress Index

 

  • UNDP; Gender Inequality Index

 

  • UNICEF; Child Labor

 

  • World Bank; World Development Indicators – GINI Index

 

  • OECD; Income Distribution Database

 

Human Development

  • UNDP; Human Development Report

 

Social Unrest

  • Fund for Peace; Fragile States Index

 

Liberty & Inequality

  • Freedom House; Political Rights & Civil Liberties

 

Competitiveness

  • World Economic Forum; The Global Competitiveness Report 2019, WEF, Switzerland, 2019

     

Political Risk

  • PRS Group; Political Risk Services (PRS)

 

Accountability

  • World Bank; Worldwide Governance Indicators

 

Stability

  • World Bank; Worldwide Governance Indicators

 

Effectiveness

  • World Bank; Worldwide Governance Indicators

 

Regulatory Quality

  • World Bank; Worldwide Governance Indicators

 

Rule of Law

  • World Bank; Worldwide Governance Indicators

 

Corruption

  • World Bank; Worldwide Governance Indicators

 

Aging

  • IMF - Fiscal Monitor; NPV of Pension & Health Care Spending Change 2015-50

 

  • UN – Population Division; Old Dependency Ratio & Old Dependency Ratio 2050

 

  • World Bank – Women, Business and the Law; Retirement Age

 

Institutions

  • World Economic Forum; The Global Competitiveness Report 2019, WEF, Switzerland, 2019

 


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

03.2. Describe how your ESG information or analysis is shared among your investment team.

          For all sectors a materiality assessment is available that helps identifying the most material ESG topics per sector.
        

03.3. Additional information. [Optional]

Corporate bonds

Our ESG opinion is formed in close cooperation with analysts of RobecoSAM. Based on their proprietary methodology and analysis, the RobecoSAM team is ideally positioned to identify companies leading/lagging with respect to their peers in terms of sustainability and thus stakeholder value creation. All information, which is based on detailed assessment questionnaires and self-assessments, is summarized in a sustainability report by RobecoSAM, exclusively provided to Robeco analysts.

Government bonds

The Country Sustainability Ranking is available for the portfolio managers of the SSA fixed income team and has also been made available for portfolio managers and analysts of other Robeco investment teams. The CSR model tool gives the possibility to look at detailed country data, to see the historical development of the 17 indicators and to compare countries with their peers.

Relevant trends in the ranking are analyzed by RobecoSAM and discussed after every update of the Country Sustainability Ranking. In addition, the SSA fixed income team and RobecoSAM together write and discuss country reports. In these reports countries are analyzed in detail. Their strengths and weaknesses are discussed in country committee meetings. The RobecoSAM analysts participate in these meetings.


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