In the selection and monitoring of external managers we monitor on our 5 P's: planet, performance, process, people and product. In the first P we take into account ESG.
The first part of this process is with the selection of the managers. When selecting new managers, the RI team writes an opinion of the RI aspects of the new manager, including their:
1. Commitment to responsible investment (among which the demand of being UNPRI signatory or showing proof of RI-policy equal to it)
2. Integration of ESG factors in investment processes and research
3. Evidence of this ESG integration with solid examples
5. Exclusion policy
In the continuous monitoring of external managers we send an ESG-questionnaire every year, regarding the progress of the managers in implementing the 6 principles and of the implementation of ESG in their investment policy and decisions. Based on the answers on this questionnaire, we have a conversation with the managers about topics that we might want to elaborate on.
Managers are scored a green, orange or red score on the basis of this information. Red scoring managers should improve within two years, or their dismissal will be discussed by MN.