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Loomis, Sayles & Company, L.P.

PRI reporting framework 2020

You are in Strategy and Governance » Objectives and strategies


SG 05. RI goals and objectives

05.1. 組織が責任投資活動に関して目的を設定して見直しを行っているかどうか、および、行っている場合にはその頻度を記載してください。

05.2. 補足情報 [任意]

The Firm's ESG objectives are within the purview of the ESG Committee, led by the director of ESG, with input and approval of the Chief Executive Officer and the ESG Advisory Board.  The ESG committee meets at least monthly to review the responsible engagement activities of Loomis Sayles, to further the integration of ESG issues into the investment process (including providing state of the art tools to Loomis Sayles' investment professionals), to oversee activities related to membership in advocacy groups, including the PRI and the UK Financial Reporting Council (UK Stewardship Code), and to further the progress of Loomis Sayles in engaging with issuers on matters of environmental, governance and social practices.  Further, the ESG Committee sets goals for the firm's engagement activities, evaluates additional ESG tools available from third parties, considers membership or signatory opportunities with respect to ESG-related groups (such as the TCFD and other initiatives, including Climate Action 100+), plans and delivers internal training, identifies external training opportunities, prepares public statements on ESG activities at Loomis Sayles and other communications (including responses to specific client requests), prepares the PRI assessment, and addresses other ESG-related matters.  In addition, our Chief Investment Risk Officer's semiannual reviews ensure that investment teams are aware of and appropriately considering the responsible investment objectives set by the firm.

SG 06. Main goals/objectives this year

06.1. 報告年度に組織として設定している責任投資の主な目的を挙げてください。



          Trained on a variety of ESG subjects with our investment professionals.  Increased awareness and dialogue on ESG integration as a result of the training.



  • Training on carbon emissions reporting for portfolios began in 2019 with our 'Carbon Footprint primer' and continues into 2020

  •  Training on climate-related tools and resources such as SASB materiality maps 

  • Training on data and functionality of the ESG Center

  • Climate change-specific training for portfolio managers, product managers and analysts was planned in 2019 and carried out in early February 2020


          Fixed Income Best Practices project started mid-2019; Equity team meetings quarterly; proxy voting policy and practice enhancements; enhancements to ESG engagement database.


Fixed Income Best Practices project: We completed the first round of our FI Best Practices project, working with 5 credit and sovereign analysts and the Global Bond team to assess best practices in ESG integration, engagement, valuation, portfolio construction, and risk management.  The work has expanded to include all fixed income analysts and fixed income product teams. 

Equity team meetings: The Director of ESG and members of the ESG Committee meet at least quarterly with each equity team to discuss ESG engagement examples and share other ESG activites across the firm.

Proxy voting: We revised our Proxy Voting Policy, including by clarifying the relationship of ESG in our decisionmaking and voting processes and enhanced our proxy voting process to include the ISS Communicator, which allows the equity teams and analysts to more efficiently receive information and document their thinking on proxy votes.  This system also allow more effective reporting on our proxy voting decisions.

Company specific engagement:  We continue to utilize our ESG engagement database to increase awareness and track ESG engagement with issuers.  For each meeting/call with issuers, we request investment professionals to document in the database whether they discussed E, S, or G.  




          ESG educational meetings; formal email with firm-wide distribution; investment team quarterly meetings; engagement of consultant and assessment of vendor methodology presentations


  • Developed a collection of standard slides for ESG-related work (including climate change where applicable)
  • Developed the Fixed Income Best Practices project and relevant slide deck for internal communication across investment teams
  • As part of the Fixed Income Best Practices project, leveraged the SASB materiality map as a framework, and developed Loomis Sayles’ own materiality maps for fixed income sectors; also assigned internal 'ESG scores', which will be incorporated into our systems in 2020
  • Updated ESG Policy Statement and integrated climate change
  • Prepared a carbon primer about carbon emissions footprinting; began training in 2019 which continues into 2020
  • Engaged external consultant to collaborate with fixed income analysts on a green bond research paper 
  • Our Green Council enhanced its intranet page and began further collaboration with the ESG Committee


          Encouraged enhanced documentation in the engagement database; enhanced proxy policy to incorporate additional ESG language; joined Climate Change affiliate working group


One of the primary goals of our ESG initiatives is to ensure that the investment professionals are incorporating ESG issues through authentic integration and engagement. As fundamental investors with a strong history of meeting with issuers on both the fixed income and equity product teams, we have always engaged with management teams on the issues that we believe are material.  Those issues include ESG factors as well.  

We have also joined a Climate Change working group for all affiliates of our parent, Natixis. This group willmeet monthly and share knowledge and best practices in climate change, including potential engagement of organizations contributing to climate change.



          Increase in number of product team examples of ESG incorporation into their investment processes


​Over the last year, our ESG Committee met with investment professionals from almost every team on a quarterly basis. We helped them to enhance their investment policy documents where appropriate. We now have ESG data integrated into both our proprietary ESG Center and Factset, providing portfolio managers with an efficient way to incorporate ESG factors into their decision-making processes. Our Chief Investment Risk Officer incorporates ESG measurement factors in his semi-annual team reviews for attribution purposes to enhance understanding of how and to what effect portfolio managers are using ESG in their investment decision making processes.

2019 initiatives included:

  • Engagement of  groups of analysts to develop ESG materiality maps that include climate change consideration
  • Development of internal process to understand and score ESG performance (including climate change) of portfolio companies 


          Enhancing organization-wide climate change expertise


          Completion of consultant work, climate change training


Hired external climate expert to: 

  • Assess current practices and recommend next steps for TCFD implementation
  • Provide climate training across organization 
  • Act as an advisor on climate related matters


          Carbon reporting for clients


          Reports delivered


Loomis Sayles provides carbon footprinting of portfolio upon client requests and uses MSCI and Sustainalytics data.




          Chief Investment Risk Officer review including ESG factor performance of portfolios with investment teams


The Chief Investment Risk Officer conducts semiannual Investment Risk Reviews with each portfolio management team at the firm.  The purpose of the semiannual meetings is to evaluate investment processes, performance and risk attribution.  ESG factors are an important part of that assessment. Any pertinent discussions around ESG, either client driven or performance related, are discussed, noted and elevated to senior management if required.

Our Chief Investment Officer conducts an investment review, which includes the CIRO, the deputy CIO, and the Director of Business Development.  The CIO review occurs less frequently than the CIRO review, but includes a more in-depth analysis of each investment team and how the team's process and philosophy aligns with the firm's five pillars, which comprise (1) a sound investment philosophy; (2) a rigorous repeatable approach; (3) proprietary research; (4) disciplined portfolio construction; and (5) integrated risk management.  ESG and climate data may be discussed within each of the five pillars.

We began to integrate the SASB materiality map framework into our fixed income systems in 2019.  We also worked with our quantitative team to integrate our internal ESG scores in fixed income into our relative value tools (e.g. URV).



          Creation of ESG Center and related reports; Fixed Income Best Practices project deliverables


The Loomis Sayles ESG Center has been introduced to all investment professionals.  It allows the portfolio managers to understand their exposure to ESG factors on both an absolute basis and relative to their benchmarks. 

One of the key deliverables of the Fixed Income Best Practices project is an industry materiality map, which highlights the most material ESG factors within each industry. Based on that assessment, including the climate-related material metrics under the environmental pillar, the analysts will 'shine a light' on these factors for the portfolio managers, as part of their recommendations.


          Assessment of themes and exposures within portfolios and across the firm


          ESG themes in portfolios vs benchmarks


We have begun to assess the key material ESG themes in all of our client portfolios as well as the benchmarks against which our clients compare their portfolios.  This includes an expansion of work on climate-related themes.  

Our goal is to understand the thematic exposures within our investment universe on both an absolute and relative basis, so that we may prioritize our engagement with issuers based on these thematic exposures.



          Collaboration with other RI groups/initiatives


We continue to assess the many RI initiatives and organizations that are available for asset managers.  In addition to the PRI, the UK Stewardship Code, and the LGPS Code of Transparency:

  • Our COO leads an ESG project with the Association of Institutional Investors.  The goal is to gather asset managers and financial services companies to collaborate on ESG issues. Our key project in 2019 was to work with eVestment to create a more standardized and robust set of ESG questions.
  • Our Director of ESG spoke at a number of conferences last year (i.e. Diversity and ESG at G7 Natixis event; S&P Insurance conference ESG panel; London Professional Trustees Senate confernece; the CFA Boston Society Fixed Income Conference ESG presentation)
  • We have also joined a Climate Change working group for all affiliates of our parent, Natixis. This group will meet telephonically monthly, and share knowledge and best practices in climate change, including potential engagement organizations in the climate space.


          Meetings with other ESG investment professionals, consultants, and industry participants


We have had frequent discussions with clients and prospects and consultants to share ideas and interest in joining a variety of RI intiatives.  We have discussed the TCFD, TPI, Climate Action 100+, etc, and we expect to announce support of some of these climate related initiatives in 2020.  The aforementioned Natixis affiliates' Climate Change working group will be another opportunity to share initiatives and consider adoption of specific frameworks and affiliations.


          ESG examples of integration and engagement


In 2019, we asked our fixed income analysts to more formally document their ESG examples of both ESG integration and engagement.  The examples include a variety of E, S, and G examples, and are helpful to better communicate with the fixed income teams about material ESG issues, include climate-related factors, and the engagement with the management teams where relevant.

We also created a number of slidedecks in 2019 to help communicate with our teams:

  • ESG initiatives at Loomis ("ESG slide library")
  • Best practice project 
  • Carbon primer 
  • Climate Change education


          Creating a library of ESG incorporation examples to illustrate -- across strategies and ESG topics -- ESG incorporation at Loomis Sayles


The ESG Committee has worked with multiple portfolio management teams to elicit and document ESG integration themes in research, portfolio construction and engagement activities. These examples cover a broad range of ESG topics including climate change.

06.2. 補足情報 [任意]