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Bank of America Global Wealth and Investment Management

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%
84 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
16 %
Total actively managed listed equities 100%

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

IP/ MAA:  Within IP, MAA acts as investment manager for several equity strategies and offers negative screening to clients that have specific themes they would like to restrict from the portfolio.  

CIO:  The Social Innovation screen seeks to find companies that are best-in-class across the three focus areas within the screening process: environmental stewardship, human capital engagement, and corporate governance. We also employ a performance review which is designed to measure how effectively corporations implement the policies and procedures described and evaluated in the previous step, and whether the company capitalizes on external incentives for good corporate behaviour.

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


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


LEI 03. Information from engagement and/or voting used in investment decision-making (Not Applicable)


(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

IP/MAA:  To negatively screen accounts MAA uses screens from a third party provider, which enompass religious, industry, country, sector, and individual company screens.

Screened by

Description

CIO:  Screen tests the companies broadly against the key characteristics that are designed to identify corporations that achieve positive social impact through progressive policies believed to be creators of value.

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

IP/MAA:  We have a licensing agreement with a third party provider and our clients can leverage any of the negative screens.  We can accommodate restrictions of up to 30% of an account and prorate cash proceeds of these restrictions across the rest of the model.  We currently don't disclose criteria used in our screens nor are clients informed when the screen is changed. 

CIO:  As ESG quality and data improves and evolves with time, our team continues to develop scoring methodology to encompass this data. We keep clients apprised of improvements through ongoing conversations. The Social Innovation screen seeks to find companies that are best-in-class across the three focus areas within the screening process: Environmental Stewardship, Human Capital Engagement, and Corporate Governance. We also employ a Performance Review which is designed to measure how effectively corporations implement the policies and procedures described and evaluated in the previous step, and whether the company capitalizes on external incentives for good corporate behavior. We believe the the data points used in the screening process identify companies that are having positive social impact while simulataneously creating economic advantages for their businesses. The scoring process takes place after each quarter-end and the portfolios are adjusted accordingly. Given CIO’s discretionary approach, changes are implemented and clients may speak with their portfolio managers to be made aware of any changes in a client's portfolio. 


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.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.5. Additional information. [Optional]

IP/MAA:  Boxes 1 and 5 in LEI 05.1 is checked with respect to MAA activities.

CIO: All other responses in LEI 05.1 to LEI 05.4 pertain solely to the CIO Socially Innovative Investing suite.


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


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

IP/MAA:  To the extent that a client requests a thematic ESG mandate, MAA can implement through screening capabilities from a third party data provider.

CIO:  The Social Innovation screen seeks to find companies that are best-in-class across the three focus areas within the screening process: Environmental Stewardship, Human Capital Engagement, and Corporate Governance. We also employ a Performance Review which is designed to measure how effectively corporations implement the policies and procedures described and evaluated in the previous step, and whether the company capitalizes on external incentives for good corporate behavior. This team provides various thematic strategies that focus on specific ESG factors as being more relevant to a particular client interest. The Social Innovation screen is only applicable to the CIO Socially Innovative strategies.


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

IP/MAA:  Not applicable

CIO: The responses above pertain solely to the CIO Socially Innovative Investing suite


LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information. [Optional]

IP/MAA:  Not applicable

CIO: The responses above pertain solely to the CIO Socially Innovative Investing suite


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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