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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 » Implementation processes » (A) Implementation: Screening

(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


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.

Screened by

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

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. 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.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.5. Additional information. [Optional]

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. Indicate which processes your organisation uses to ensure fund criteria are not breached.

06.2. If breaches of fund screening criteria are identified, describe the process followed to correct those breaches.

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. Additional information. [Optional]