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Robeco

PRI reporting framework 2020

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Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

          Team heads investment departments
        

Other description (1)

          Sustainability and Impact Strategy committee
        

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

Sustainability Investing is a key part of Robeco's overall strategy. The overall strategy is under supervision of Robeco's Supervisory board.

The responsibility for implementing SI is allocated to the most senior level within the investment department. The Heads of Investments are ultimately responsible for Sustainability Investing. A dedicated committee called the Sustainability & Impact Strategy Committee (SISC) with members from the executive committee and all relevant departments at Robeco and RobecoSAM allow us to coordinate sustainability matters from a companywide perspective. The SISC defines the overarching sustainability investing strategy based on our joint vision, mission and core beliefs, and guides the development of respective policies and practical guidelines for implementation.

Furthermore, within Robeco, a group of SI leads of the different investment team participates in an SI Committees to further improve the quality of our ESG integration. One SI committee specifically focuses on our SI approach in quant investing. This group is in 2019 chaired by our SI specialist on quant investing. The second SI committee specifically focuses on knowledge sharing related to our SI approach in fundamental investing. This group is in 2019 chaired by our Head of ESG Integration. Execution of Robeco's SI strategy is executed by the various investment teams and the Active Ownership team.

The excerpt from our stewardship policy below, describes the basic responsibilities regarding Robeco's SI activities:

"The responsibility for implementing SI is allocated to the most senior level within the investment department.

Robeco's portfolio managers and investment analysts are responsible for adequate ESG integration into the investment process. Robeco offers clients a variety of investment solutions over various assets classes. Investment processes, risks, opportunities and investment exposures differ between these solutions related to this. As a logical consequence ESG analysis, type of data used and the impact of ESG matters on investment decisions and investment universe differs per investment process. The investment teams have developed and customized ESG integration process that add value to their own investment process.

The Active Ownership team is responsible for voting and engagement activities. The team votes the equity positions for Robeco's equity funds and the equities of our clients. Robeco's voting policy is the leading document for instructing proxy votes on corporate governance related topics. The team consults with different investment teams to make a well informed decision on investment related agenda items. The Active Ownership team takes the lead on Robeco's engagement program. Many engagements are done in collaboration with the different investment teams. On an annual basis the Active Ownership team collects the input from all stakeholders (including investment teams and clients) to prioritize engagement efforts and reports on progress made.

The final responsibility for the exclusion policy lies with Robeco’s Executive Committee. The SISC decides on the implementation of the exclusion policy and is advised by relevant specialists of Robeco."

https://www.robeco.com/docm/docu-robeco-stewardship-policy.pdf

 

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

24 Number

07.4. Additional information. [Optional]

During 2019 24 people within Robeco had job titles that can defined as dedicated responsible investment staff including:

  • 14 in the ESG integration& Active Ownership team including Head of ESG Integration and Head of Active Ownership.
  • 1 ESG integration specialist Private Equity
  • 2 Sustainability specialists credits
  • 1 Sustainability specialist quant equity
  • 5 Sustainability specialists fundamental equity,: Global equity, EM equity, AsiaPac equity, trends equity and China equity
  • 1 Sustainability specialist quantitative research

In addition, all portfolio managers and analysts integrate ESG factors into their investment decisions. In our number we've excluded the sustainability specialists at RobecoSAM, however we closely cooperate with the RobecoSAM colleagues, e.g. from the RobecoSAM SI Research department and use their knowledge and insights. This would add over 60 people to the dedicated research.


SG 07 CC. Climate-issues roles and responsibilities

07.5 CC. Indicate the roles in the organisation that have oversight, accountability and/or management responsibilities for climate-related issues.

Board members or trustees

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Risk Officer (CRO), Investment Committee

Other Chief-level staff or heads of departments

Portfolio managers

Investment analysts

Dedicated responsible investment staff

External managers or service providers

Other role, specify (1)

          Sustainability and Impact Strategy committee
        

07.7 CC. For management-level roles that assess and manage climate-related issues, provide further information on the structure and processes involved.

The Sustainability and Impact Strategy Committee (SISC) acts as an advisory body to the executive committee. The SISC is responsible for reviewing climate-related actions and provide advisory input on specific proposals. In 2019 it commissioned a climate change task force to further progress on the important topic of climate change. The task force consists of senior experts from the sustainability research, active ownership, risk management and investment teams. The Climate Change Task-force (CCTF) acts as the central group of competence on climate change related topics, adapting existing investment strategies, risk management, and active ownership activities, as well as developing new products. CCTF progress is reported to the SISC on a monthly basis and the Executive Committee of Robeco was updated twice in 2019.

Robeco / RobecoSAM regularly assesses actual and potential impacts of climate-related short, medium and long-term risks and opportunities on its businesses, strategy, and financial planning, where such information is material.

How we manage and integrate climate change risks and opportunities in our organisation

- Risk management: Robeco has set up a comprehensive Enterprise Risk Management Framework for management of all relevant fnancial and nonfinancial (including regulatory) risk. In 2018, apart from its general focus on risk governance, Robeco started investigating and monitoring environmental risks, and climate risks in particular. In this context, the Financial Risk Management department focuses on transition risk by visualizing carbon emissions and designing climate change scenarios in order to monitor the impact on client portfolios, both in equities and fixed income.

-Decarbonization process: Robeco and RobecoSAM are committed to act in line with the Paris climate Agreement and live after the commitments made in the Dutch Climate Agreement (klimaatakkoord). This means that we need to set a portfolio decarbonization pathway. Currently we are taking actions to having the appropriate data and tooling in place, assessing the expected consequences on our investment strategies.

- Active Ownership process: Robeco and RobecoSAM have a long track record of engaging with companies on their environmental, social and governance practices and using our voting rights to support shareholder proposals that help address climate change risks. We encourage the implementation of proactive and ambitious environmental strategies, the pursuit of operational excellence, the creation of asset portfolio resilience, the innovation of business models, and responsible participation in the public policy debate.

- Investment process: Robeco and RobecoSAM’s investment teams adopt a holistic approach when integrating sustainability into their investment processes. We believe that systematically considering climate change risks in our investment processes is essential to the success of our investing strategies. We address climate change risks through evaluation of business models, corporate climate change strategies, products and services. By including the analysis on climate change in the investment process, our fundamental analysts have a better view on the risks (and opportunities) companies are exposed to.

07.8 CC. Indicate how your organisation engages external investment managers and/or service providers on the TCFD recommendations and their implementation.

Specify

          We asked PE managers to provide information on how they manage climate-related risks/opportunities/TCFD in their portfolio companies in the 2019 ESG Survey.
        

SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

08.1b. RI in personal development and/or training plan

08.2. Describe any activities undertaken during the reporting year to develop and maintain Board members’ skills and knowledge in relation to responsible investment.

Sustainability is a fixed part of the permanent education programme of the supervisory board.

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Other C-level staff or head of department

          Team heads investment departments
        

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Portfolio managers

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investment analysts

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Dedicated responsible investment staff

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Other role (1) [from SG 07]

          Sustainability and Impact Strategy committee
        

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

Performance management: Both team heads and employees in the investment department have KPI's related to ESG integration.

Rewards: Variable pay of both managers and employees in the investment department is linked to KPI's related to ESG integration. Our aim is to further improve the quality of ESG integration and increase coordination and collaboration between the investment specialists, active ownership specialists and SI research colleagues. The different investment teams have set goals that are set out in the sustainability report. Analysts in the fundamental equity and fixed income teams have KPIs on ESG integration. The SI specialists in each team have further KPIs to help improve ESG integration further, innovate and/or write articles on the ESG approach.

Variable pay of both manager and employees in the Active ownership team is linked to KPI's related to active ownership success, collaboration and sustainability related projects.

Personal development: The investment department organizes - in close collaboration with the dedicated responsible investment staff - quarterly knowledge sharing sessions to improve the overall responsible investment knowledge of investment specialists. In addition, investment professionals and engagement specialists regularly visit sustainability investment related seminars and/or are presenting/speaking at these seminars. In addition knowledge sharing sessions are organised for the sales & account management teams to raise their level of responsible investments knowledge. In 2019 new sustainability courses were add to the development portal of Robeco.

Furthermore sustainability is one of the four core values of Robeco. Besides the quantitative and qualitative KPI's employees are also evaluated based on their behaviour on the core values and as such sustainability is part of all staff's evaluation and development.

 


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