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New York State Common Retirement Fund

PRI reporting framework 2020

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.
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 All three strategies combined
0 No incorporation strategies applied
100%
Securitised
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 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.

We believe that ESG analysis provides a holistic view of fixed income issuers and helps enhance our fundamental credit analysis.  We employ a combination of integration, thematic, and screening strategies to incorporate ESG into our fixed income investments as below:

Integration is an effective way to systematically address ESG risks and capture ESG opportunities, which we apply to our credit analyses on corporate and securitized fixed income issuers.
Thematic strategy provides opportunities to invest in sustainability solutions consistent with our fiduciary duty. We look to invest in nine environmental and social themes defined under our Sustainable Investment-Climate Solutions (SICS) program such as climate change, affordable housing, among others.
We employ negative screening for companies that add articulable, serious, and sustained investment risk to the portfolio. Our specific criteria includes firearms manufacturers and private prisons. We are also evaluating thermal coal mining companies’ readiness for a low carbon transition, and engaging with the individual companies before considering divestment.

For SSA, we largely invest in US Treasuries and Federal Agency housing bonds to preserve our capital while receiving a dependable income stream, and our exposure to municipal and other sovereign debts is minimal. 

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
Corporate (financial)
Corporate (non-financial)
Securitised
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  

specify description

          External Investment Manager
        

Indicate who provides this information  

specify description

          External Investment Manager
        

Indicate who provides this information  

specify description

          External Investment Manager
        

Indicate who provides this information  

specific description

          External Investment Manager
        

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.

We typically conduct further in-house research to supplement the research provided by third parties across ESG strategies. We use industry and issuer research from multiple sources including company filings, ESG data providers, managers, media reports, NGOs, and the Fund’s Corporate Governance team, among others. We are in the process of integrating ESG data into the fixed income team’s central data and risk modelling system, which informs our fundamental analysis. We also regularly invite expert speakers on key climate change and sustainability trends for our investment team.  

02.4. Additional information. [Optional]


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.

03.3. Additional information. [Optional]

We typically conduct further in-house research to supplement the research provided by third parties across ESG strategies. We use industry and issuer research from multiple sources including company filings, ESG data providers, managers, media reports, NGOs, and the Fund’s Corporate Governance team, among others. We are in the process of integrating ESG data into the fixed income team’s central data and risk modelling system, which informs our fundamental analysis. We also regularly invite expert speakers on key climate change and sustainability trends for our investment team.  


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