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Local Pensions Partnership

PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities



LEI 01. Percentage of each incorporation strategy

01.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
100 %
アクティブ運用している上場株式の合計 100%

01.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

LPPI provides investment management services to public sector pension funds. Our clients are administering bodies with a fiduciary duty to make investments where they will earn the best long-term risk adjusted returns for beneficiaries.

Our assessment of investment risks and opportunities on behalf of client funds involves informed judgements about the quality of company fundamentals and about the operating and wider policy and social context during our period of prospective ownership. We are long term investors and integrating ESG considerations provides a frame of reference for our continual assessment and review process. We believe that companies which understand and manage their governance, social and environmental risks effectively deliver better long-term returns and suffer reduced short-term volatility. In assessing risks and opportunities we are searching for quality and sustainability, characteristics which require a detailed evaluation of the interplay of a range of factors and a forward looking assessment of value drivers.

Our equity portfolio is 100% actively managed, we routinely integrate ESG in our stock selection process, as well as within our engagement with investee companies.

For the part of the portfolio managed internally, processes are conducted by our investment staff and informed by third party proprietary ESG data (the equity team supported by the RI team). For external mandates, our Investment Management Agreements require ESG considerations to be integrated into investment decision-making by all managers we select to work with us.

We favour an open investment universe within which managers can identify and invest in quality companies but recognise the investment risks faced from climate change and have adopted an extraordinary restriction for our Global Equities Fund. We exclude all companies earning +50% of their revenues from the extraction of thermal coal. 

In 2019 we have adopted a Policy on Controverisal Weapons which explains how we will seek to avoid investment in companies engaging in defined activities.

01.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]

LEI 02. Type of ESG information used in investment decision

02.1. 組織でESG組み入れ戦略に使用しているESG情報およびこの情報の提供者を記載してください。








02.2. ブローカーに対しESG調査結果を提供するよう奨励しているかどうかについて記載してください。

02.4. 補足情報 [任意]

LPPI uses ESG information from a range of sources to identify material issues and consider appropriate actions.  ESG information forms part of review process supporting initial stock selection, post investment monitoring and engagement planning. 

Information is mostly sourced from external providers of ESG data. This is complemented by analysis from other sources including data produced by organisations including CDP, Carbon Tracker and the Transition Pathway Initiative.

For stocks held by or under consideration for the internal mandate, the analysis of ESG information involves both our in-house equity team and our RI team 


LEI 03. Information from engagement and/or voting used in investment decision-making

03.1. ESGへのエンゲージメントや(委任状による)議決権行使から得られる情報を投資の意思決定に利用できるプロセスが組織にあるかどうかを記載してください。

03.2. 補足情報 [任意]

Company-specific and thematic information derived from engagements and collaborations are discussed at LPP's quarterly Stewardship Committee meetings. Members of the Committee receive a report on collaborations and partnerships underway and on voting activity for the prior quarter which ensures information derived from engagement and voting activity is being shared and insights and opportunities discussed.

A) 実施:スクリーニング

LEI 04. Types of screening applied

04.1. 組織内でアクティブ運用している上場株式に適用するスクリーニングの種類を記載し、説明してください。




In 2018 LPPI introduced a restriction to the Global Equities Fund which prevents investment in companies predominantly involved in the production of thermal coal (as defined by the related GICS sub-industry).

Details of this restriction and of wider work on climate change are available from LPPI's Responsible Investment Policy and its accompanying Annex on Climate Change.


          During 2019, LPPI has developed and formally adopted a Policy on Controversial Weapons.


In September 2019 LPPI added an Annex on Controversial Weapons to its RI Policy.

Controversial weapons are those that have an indiscriminate and disproportional humanitarian impact on civilian populations; the effects of which can be felt long after military conflicts have ended.

The policy reflects LPPI’s commitment to avoid funding such activities by not investing in companies which are known producers of controversial weapons.

The new policy explains an approach to avoiding investments in companies that contravene internationally recognised norms and applicable treaties.

04.2. スクリーニング基準が変更された場合に顧客や受益者に通知する方法について説明してください。

LPPI generally does not favour screening or the artificial restriction of the investment universe as a risk management approach.

Where new restrictions or changes to existing restrictions are proposed they are discussed with clients in advance.

LEI 05. Processes to ensure screening is based on robust analysis

05.1. スクリーニングが徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを選択してください。

05.2. ESGスクリーニング戦略の一環で包括的なESG調査の対象となるアクティブ上場株式ポートフォリオの割合を示してください。

05.3. 第三者のESG評価がスクリーニング目的で更新される頻度を示してください。

05.5. 補足情報 [任意]

We monitor our listed equity portfolio ESG score vs the benchmark each quarter.

LEI 06. Processes to ensure fund criteria are not breached

06.1. ファンドの基準に違反がないことを確認するために組織が使用しているプロセスを記載してください。

06.2. ファンドのスクリーニング基準に対する違反が判明した場合、これらの違反を是正するために従うプロセスを説明してください。

Thermal Coal

Breaches are unlikely given policy implementation depends (only) on the identification of stocks classified within a GICS sub-industry group.

No breaches have been identified to date. Should a breach happen, a conversation would be held with the relevant manager on how to best unwind the position and avoid similar breaches in the future.

Controversial Weapons

Our Policy applies to all asset classes and incorporates a list of excluded companies and a monitoring process. 

In public markets any identified breach would result in the holding being liquidated. In private markets and alternative asset classes, information on investee companies may be more limited than in public markets. In this case, LPPI will work closely with delegate managers to avoid any investment in excluded companies.If unintended investments are identified LPPI will seek divestment through active redemption or, if divestment would impose a material financial detriment, through natural maturity of the fund.


06.3. 補足情報 [任意]

C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. E・S・Gの各要因が投資分析の一環として体系的に調査されている、アクティブ運用の上場株式ポートフォリオの割合を記載してください。








08.2. 補足情報 [任意]

A systematic review of Environmental, Social and Governance issues is routinely undertaken as part of the due diligence which precedes a final decision being made on whether to add a new stock to the internally managed portfolio. For externally managed funds, monitoring of ESG characteristics takes place quarterly.

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

09.1. ESG統合が徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを記載してください。

          Material risks identified as part ESG research are evaluated and presented within the papers which support and inform investment decision-making.

09.2. 組織の統合戦略の一環で包括的ESG調査の対象になるアクティブ運用上場株式の割合を記載してください。

09.3. ESG統合戦略に使われる第三者のESG評価が更新される頻度を示してください。

09.5. ポートフォリオ・マネージャーがどのようにしてESG情報を保有し、使っているのか説明してください。

09.6. 補足情報 [任意]

LEI 10. Aspects of analysis ESG information is integrated into


10.1. 投資分析のどの側面にESG情報を統合しているかを記載してください。





10.2. ESG情報を適正価値/ファンダメンタル分析および/またはポートフォリオの構築へと統合するプロセスについて、組織でのプロセスの一部となっている手法を選択してください。

10.4. 利益予想/バリュエーションツールの修正に使用した手法を説明してください。

ESG information is routinely incorporated into LPPI's fundamental analysis and in this way it influences our view of the fair value of all stocks within the internally managed portfolio.

When we undertake analysis our research of all factors (including ESG) is focussed on helping us to form a view on current and future key value drivers, including:

  • the quantum of future cash flows;
  • the timing of these cash flows;
  • the appropriate discount rate.

LPPI evaluates material matters for individual companies case by case .  Any concerns we identify (for example around governance) will influence the discount rate we consider appropriate and directly impact our view of fair value.


10.6. 補足情報 [任意]