This report shows public data only. Is this your organisation? If so, login here to view your full report.

SBI Funds Management Private Limited

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income

ESG incorporation in actively managed fixed income

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

SBIFMPL has recently incorporated its ESG lens over its Fixed Income Coverage. Currently the process is similar to what we have for listed equities. We assess the companies on their performance on ESG based parameters. The companies' ESG scores are compared to an internally set benchmark. The companies who score below the benchmark are not invested in. We are also engaging with the fixed income companies to help improve ESG disclosure practices as fixed income issuers in India are not mandated to publish business responsibility reports unlike listed equities.

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
SSA
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  

Indicate who provides this information  

Indicate who provides this information  

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.

ESG Research Provider: Our current international ESG Ratings provider provides ratings for Fixed Income issuers whose parents are listed entities

In-house ESG Questionnaire: We carry out our own engagement and assessment of FI Issuers by sending our ESG questionnaire to the companies

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]


(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Securitised
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

04.2. Describe your approach to screening for internally managed active fixed income

SBIFMPL has recently started to have an ESG lens over our Fixed Income coverage. Following are the steps being followed:

  • ESG Ratings: We take the ESG ratings of listed parent companies of fixed income issuers to map the overarching group level policies and initiatives that extend to the subsidiaries
  • ESG Questionnaire: We send out our in-house ESG questionnaire to the fixed income companies to assess them on their ESG initiatives. In this process we also encourage them to disclose their ESG initiatives publicly
  • Screening: The Screening process is similar to that we use in Listed Equities. We include ESG assessment in the first stage of the initiation of a company under our coverage and check the score against a set threshold. We take decisions to invest accordingly.

04.3. Additional information. [Optional]


FI 05. Examples of ESG factors in screening process (Not Completed)


FI 06. Screening - ensuring criteria are met

06.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Negative/exclusionary screening

06.2. Additional information. [Optional]


Top