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Nuveen, a TIAA Company

PRI reporting framework 2020

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You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (C) Implementation: Integration of ESG factors

(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis




Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

In 2018 we launched the Nuveen RI Data Platform to capture, curate and govern ESG information and provide greater access to ESG data, research, and tools for our investment teams to incorporate into investment decision-making. We also collaborated to strengthen our investment colleagues' convictions on material ESG themes and factors through development of proprietary ESG materiality frameworks.

The RI Data Platform provides all teams access to a standardized set of ESG data and information for use in investment decision-making. In addition, certain affiliates have developed explicit processes for capturing and documenting internal ESG analysis and conviction to better integrate ESG information into investment decision-making:

TIAA Investments and Nuveen Asset Management: Analysts assign internal ESG ratings to each name in active coverage universe based on material ESG analysis. Analysis is based on data in the RI Data Platform alongside analyst own proprietary views and research. These internal ESG ratings are stored in central repositories and made available to all portfolio managers within that investment team. Additional processes will be developed in 2020 to integrate ESG information further into existing portfolio and risk reporting tools for portfolio managers.

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

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

          See Additional Information

09.6. Additional information. [Optional]

When material to an investment thesis, key issues are thoroughly investigated and reviewed across the analyst and portfolio management teams. In addition, proprietary portfolio ESG reporting capabilities are being developed to provide our portfolio managers with greater insights into the ESG attributes of their holdings. Companies with potential issues can be vetted with the analyst team along with the RI team to better understand the concerns and develop a response if appropriate. The combination of bottom up and top down incorporation of ESG factors is an important and growing part of our investment process.

LEI 10. Aspects of analysis ESG information is integrated into

New selection options have been added to this indicator. Please review your prefilled responses carefully.

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis.

10.3. Describe how you integrate ESG information into portfolio weighting.

Much of the integration of ESG information occurs at the company and sector level where analysts attempt to capture their impact to financial models and valuations over the long term. Based on value drivers related to material ESG concerns or ability to capitalize on ESG opportunities, holdings may be bought, avoided, overweighted or underweighted in the portfolio. Illustrative examples provided in response to LEI 13.

10.4. Describe the methods you have used to adjust the income forecast/valuation tool.

Broad concerns relating to ESG factors can be expressed as risk factors which may reduce an investments fair value and increase the potential downside risk associated with an investment. This would occur via a higher discount rate used to value future projected cash flows given the uncertainty and potential for future liabilities. Known factors such as increased expense associated with regulatory requirements or changing consumer preferences are explicitly captured when modelling the estimated future cash flows of a company. ESG considerations can also represent opportunities. Companies positively aligned with secular ESG trends (for example, clean energy, data security, human capital management and health/ wellness) may experience above industry average growth and profitability, which we endeavour to explicitly capture in the relevant sector analyst's company model and valuation.

10.6. Additional information. [OPTIONAL]

The percentages selected above represent aggregated responses across Nuveen's public equity AUM. Not all responses selected apply to every specialist. Each specialist takes a unique investment approach to pursuing competitive risk-adjusted returns on behalf of its clients and may differ depending on company type, underlying asset or applicable regulation, including fiduciary duties and obligations.