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Ninety One

PRI reporting framework 2020

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Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

In conjunction with our Investment Governance Committee (IGC), Therese Niklasson, Head of Global ESG, has lead accountability for developing and managing the firm’s Responsible Investment policies and objectives.

To aid the effective integration of ESG analysis, the ESG team have established an integration programme whereby they work closely with each investment team head to establish outcomes and goals for development. At the beginning of each year the ESG team and investment team will set objectives for the year, with a focus on team awareness, training, ensuring effective use of research and data, facilitating research efforts, and participation in external initiatives and active ownership responsibilities. We report on the progress that each of the teams achieve in our annual stewardship report.


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Full investment participation of integration programs. 
Demonstrable process and influence across asset classes.
        

Progress achieved

Training sessions throughout the year have contributed to the ongoing development of ESG understanding and insight.

ESG specific sessions at investment teams offsites have increased over the period.

The ESG team facilitated training for investment teams and for the wider business.

The ESG team internally shared guidance and training on how to consider certain thematic topics, including modern slavery. 

We have also encouraged learning through the PRI Academy courses and the recent CFA ESG exam. 

Key performance indicator

          Facilitate training sessions for investment teams on ESG engagement.
        

Progress achieved

ESG engagement training is provided as part of the integration programme training we provide that is unique to each investment team.

Key performance indicator

          New/Updated marketing materials.  
Defined communications strategy
        

Progress achieved

We published our 2019 annual stewardship report, which provides a detailed account of ESG activities that have taken place over the reporting period.

Over the year we have re-launched our internal quarterly newsletter that aims to keep the business up to date in what is happening within the industry and the business. We have also launched a public version of this newsletter which can be found on our website.

We continuously look to improve our reporting and communication efforts, both internally and externally.

Key performance indicator

          Opening channels of communication with companies and seeing progress on the issues. 
Targeting engagements that have tangible outcomes.
        

Progress achieved

We have and continue to become a recognised contributor to global consultations, advocacy groups and leadership forums.

Key performance indicator

          Continued progression of ESG integration across all investment teams.
        

Progress achieved

Over 2019 the ESG team continued to work closely with each of the investment team heads to develop integration, focusing on team awareness, training, ensuring effective use of research and data, facilitating research efforts, and participation in external initiatives and active ownership responsibilities.

The ESG team have developed a best practice framework for ESG integration. Over the year, each team was assessed against the framework which has provided an understanding of how the investment teams are positioned, the quality and consistency of integration, and any gaps that need to be addressed.

Financial performance of investments

ESG characteristics of investments

Key performance indicator

          Considering the ESG rating of portfolios
        

Progress achieved

We use MSCI ESG data to support our integration work and investment research. The various investment teams make use of the data in different ways including use of raw data, as well as company reports.

The ratings and research reports may assist analysts and portfolio managers in analysing the companies, providing a more enhanced understanding of ESG risks and opportunities.

Our internal ESG profiler tool aggregates third party data to including ratings to give an ESG footprint of a portfolio. We continue to develop this tool.

We continue to develop our ‘uncovered stock template’ that helps to focus research for companies that are not rated by a third party.

Key performance indicator

          Measuring the carbon footprint of our portfolios.
        

Progress achieved

We continue to focus on the integration of climate change considerations where material within the various investment strategies.

This includes integration as part of the company review process as well as analysis of portfolio exposure to climate change risks across the business.

We are developing a proprietary tool to monitor and measure the carbon exposure of our portfolios, which includes scope 3 data. 

Other activities

Key performance indicator

          Active participation
        

Progress achieved

In 2019 we joined the Transition Pathway Initiative (TPI) and signed the Just Transition statement.

In addition to the UK Stewardship Code and the CRISA Code, we expressed our compliance with a number of global stewardship codes, including the Singapore Stewardship Principles, Hong Kong Principles of Responsible Ownership, Japanese Stewardship Code, Korea Stewardship Code and the ISG US Stewardship Principles. 

Over the year we have actively participated in conversations, consultation and conferences across the organisations and initiatives we are members of.

Key performance indicator

          Participation in RI initiatives
        

Progress achieved

During our engagement work we often encourage companies to join/report in line with the CDP/TCFDs. 

Key performance indicator

          Publication of Stewardship Report
        

Progress achieved

In 2019, we published our annual stewardship report. This report outlines case studies of integration across our investment teams and of our engagement process. 

Key performance indicator

          Providing case studies in Stewardship report
        

Progress achieved

As above, within our annual Stewardship report we include both integration and engagement case studies as well as our statistics for the reporting period. 

06.2. Additional information.

Currently objectives are set for the IGC and for the Global Head of ESG, which are guided by the Stewardship Policy. These objectives are currently medium term in nature, and generally reviewed in the personal development review (PDR) of the Global Head of ESG. The ESG team also has responsible investment objectives that should be fulfilled over the course of the year.

In addition, to aid the effective integration of ESG analysis, the ESG team have developed a best practice framework for ESG integration. An assessment in line with this framework allows us to understand how the investment teams are currently positioned, the quality and consistency of integration, and any gaps that need to be addressed. The aim of this approach is to understand the stages of the investment process that need to improve, allowing teams to focus on areas that will add the most value.


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