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Environment Agency Pension Fund

PRI reporting framework 2020

You are in Strategy and Governance » ESG issues in asset allocation

資産配分におけるESG問題

SG 13. ESG issues in strategic asset allocation

13.1. 貴社組織がシナリオ分析および/またはモデリングを実施するか記述してください。実施する場合、 シナリオ分析について説明してください(資産クラス別、セクター別、戦略的資産配分等)。

25語以内で説明してください 。 When we reviewed our strategic asset allocation in 2019, we modelled the impact of climate change on our portfolio for both transition and physical risks. We did this through Mercer's Investing in Climate Change: The Sequel.

13.2. 組織が戦略的な資産配分やセクターまたは地理的な市場間での資産の配分においてESG問題を考慮しているかどうかを記載してください。

以下を行っている

13.3. 補足情報 [任意]


SG 13 CC.

13.4 CC. 貴社組織が気候関連のリスクおよび機会を管理するためにどのようにシナリオ分析を利用しているかについて(分析がどのように解釈されているか、その結果、将来の計画等)、記述してください。

500語以内で自由に記載

When we reviewed our strategic asset allocation in 2016/17, we modelled the impact of climate change on our portfolio.  We did this through Mercer’s Investing in a Time of Climate Change model. This study provided four climate change scenarios and looked at impacts across different asset classes over 10 and 35 year time horizons.  The key conclusions were the Fund was well positioned for a 2°C scenario at a total fund and asset class level. In particular, it highlighted the benefits of investing in sustainable equities and real assets to manage climate risks and opportunities as part of a transition to a low carbon economy. The EAPF report is available on the climate risk area of our website. We are currently using Mercer’s updated model again in 2019/20 as part of our review of our strategic asset allocation.

13.5 CC. この分析をだれが利用するか記述してください。

13.6 CC. 貴社組織がその投資戦略について、投資期間を超えて、気候関連リスクの影響を評価しているか記述してください。

500語以内で自由に記載してください。

When we reviewed our strategic asset allocation in 2016/17, we modelled the impact of climate change on our portfolio.  We did this through Mercer’s Investing in a Time of Climate Change model. This study provided four climate change scenarios and looked at impacts across different asset classes over 10 and 35 year time horizons.  The key conclusions were the Fund was well positioned for a 2°C scenario at a total fund and asset class level. In particular, it highlighted the benefits of investing in sustainable equities and real assets to manage climate risks and opportunities as part of a transition to a low carbon economy. The EAPF report is available on the climate risk area of our website. We are currently using Mercer’s updated model again in 2019/20 as part of our review of our strategic asset allocation.

13.7 CC. 一定の範囲の気候シナリオを利用しているか記述してください。

13.8 CC. 貴社組織が用いる気候シナリオについて記述してください。

提供者
使用するシナリオ
IEA
IEA
IEA
IEA
IEA
IRENA
グリーンピース
持続的発展研究所
ブルームバーグ
IPCC
IPCC
IPCC
IPCC
その他

その他 (1) 具体的に記入してください:

          Not in public domain
        
その他
その他

SG 14. Long term investment risks and opportunity

14.1. 一部の投資リスクと機会は長期トレンドの結果として発生します。貴社では、以下のどの項目について考慮するか明示してください。

14.2. 気候に関するリスクと機会に対応して組織で実施されている活動を選択してください。

低炭素関連および気候変動に強いポートフォリオ、ファンド、戦略または資産クラスに投資されている運用資産(AUM)を明示してください

Total AUM
10億 100万
Currency
Assets in USD
10億 100万

使用された枠組みまたは分類法を明示してください

This captures the proportion of the fund invested in low carbon, energy efficient and other climate mitigation opportunities.

 

 

 

具体的に記入してください

          Our service provider EOS at Federated Hermes engages companies specifically with a view to enhance disclosure, integrate actions and policies around climate-related risks and investments.
        

14.3. 次のツールの中から気候関連リスクと機会の管理に組織が用いているものを選択してください。

14.4. 排出量リスクの開示を選択した場合、採用している開示方法またはそのフレームワークの中で気候関連のものを挙げてください。

The Fund uses a range of tools to help us establish the level of risk relating to climate change issues. These are more developed and quantitative in some asset classes more than others. In listed equities and bonds, fossil fuel exposure analysis and carbon footprinting provides us with useful information on the absolute exposure and the relative carbon intensity of holdings and summarises the indicators that underpin the reporting against the targets in our climate change goals.

14.5. 補足情報 [任意]

Please see our Responsible Investment Strategy - https://www.eapf.org.uk/investments/policies


SG 14 CC.

14.6 CC. 気候に関連するリスクと機会を評価するために使用されるこれらの重要な指標についての詳細を記入してください。

指標の種類
カバレッジ
目的
指標の単位
方法
気候関連の目標
          Our objective is to ensure that our Fund’s investment portfolio and processes are compatible with keeping the global average temperature increase to below 2°C relative to pre-industrial levels, in 
line with international government agreements.
        
          
        
          We aim by 2020 to: 

• Invest 15 per cent of the fund in low carbon, energy efficient and other climate-mitigation opportunities. This will contribute to our wider target to invest at least 25 per cent of the Fund in clean and sustainable companies and funds, across all asset classes. We trust that 
this will make our portfolio more resilient to the impacts of climate change and adapt to the climate change that is already in the system. 

• Decarbonise the equity portfolio, reducing our exposure to ‘future emissions’ by 90 per cent for coal and 50 per cent for oil and gas by 2020, compared to the exposure in our underlying benchmark as at 31 March 2015. ‘Future emissions’ is the amount of greenhouse gases that would be emitted should these reserves 
be extracted and ultimately burnt, expressed in tonnes of carbon dioxide equivalent. We think that this will reduce the risk of our portfolio by anticipating the reductions needed to move to a low-carbon economy. 

• Support progress towards an orderly transition to a low-carbon economy through actively working with asset owners, fund managers, companies, academia, policy makers and others in the investment industry. We recognise that active stewardship is the most effective way to tackle systemic risk.
        
加重平均炭素濃度
          
        
          tCO2e/mn GBP revenue
        
          Individual company Carbon-to-revenue intensity multiplied by its weight in the portfolio
        
カーボンフットプリント(スコープ1と2)
          
        
          Tonnes CO2e/mn GBP revenue
        
          Direct + First Tier Indirect emissions, i.e. Scope 1+ Scope 2 + Remaining 1st tier indirect.
Apportioned GHG emissions divided by apportioned revenues
        
ポートフォリオのカーボンフットプリント
          
        
          Tonnes CO2e/mn GBP revenue
        
          Apportioned GHG emissions divided by apportioned revenues
        
総炭素排出量
          
        
          Tonnes CO2e
        
          Direct  and First Tier Indirect scope

This is an absolute metric 
Apportioned carbon emissions for Direct and First Tier Indirect scopes
        
炭素濃度
          
        
          Tonnes CO2e/mn GBP revenue
        
          Apportioned GHG emissions divided by apportioned revenues
        
炭素関連資産へのエクスポージャー
          
        
          Weight (%) of companies in a portfolio 

Tonnes CO2
        
          Fossil fuel exposure is the combined weight of companies in a portfolio that derive any revenues from coal, petroleum or natural gas power generation. 


Future financed emissions represent the  carbon emissions that would be released to the atmosphere if owned fossil fuel related assets were all burnt
        

14.7 CC. 主要目標についてさらに詳しく記入してください。

目標の種類
基準年度
目標年度
内容
添付書類
          by 2020
        
          
        
          Invest 15 per cent of the fund in low carbon, energy efficient and other climate-mitigation opportunities.
        

          by 2020
        
          
        
          Our wider target to invest at least 25 per cent of the Fund in clean and sustainable companies and funds, across all asset classes. We
        

          by 2020
        
          
        
          Decarbonise the equity portfolio, reducing our exposure to ‘future emissions’ by 90 per cent for coal and 50 per cent for oil and gas by
        

          
        
          
        
          
        

          
        
          
        
          
        

14.8 CC. 気候関連のリスクが全体のリスク管理に組み込まれているかどうか記述してください。また、気候関連リスクを特定、評価、管理するために利用されたリスク管理プロセスについて説明してください。

500語以内で自由に記述。

Our Investment Strategy, designed to both robustly manage risks and take positive opportunities, has delivered 9.7% average annual investment returns over the last 5 years. Our successful financial performance is supported by our deep commitment to investing responsibly and we believe it is paramount in our ability to deliver sustainable, long term returns.

We continue to operate in a period of rapid change. Whether social, political, technological or climatic, which impact everyone, to those more specific to us as a Fund, including organisational restructuring and the requirement to pool our assets, change has been all around us. All bring opportunities and risks, and demonstrate the need for a robust approach to responsible investment and strong governance.

Responsible Investment remains at the core of our fund and it is more pressing than ever as we face a climate emergency. Evidence over the last year from the Intergovernmental Panel on Climate Change (IPCC) shows that we have 12 years to limit global temperature rise to 1.5 ºC above pre industrial levels. Through our Policy to Address the Impacts of Climate Change, we demonstrate to our members we have a credible plan to deliver strong long term financial returns as the impacts of climate change materialise.  We believe financial risk and opportunities will come from both these impacts, regulation and policy, alongside increased competition from alternatives and technological innovation.

14.9 CC. 貴社組織がTCFD採用を促すアクティブオーナーシップ活動を行うか記述してください。

説明してください。

Investors have the power to influence and change behaviour globally. As the Environment Agency Pension Fund,

there are specific priorities where we want to work with the investment community to bring about change.

These are:

• Climate Change – helping investors understand and manage the financial risks from climate change

• Using resources sustainably, with a particular emphasis on reducing plastics in the environment

• Water – managing water quantity and water quality

For these priority areas, we will engage to bring about greater disclosure and improve environmental outcomes,

including through the Taskforce on Climate-Related Financial Disclosures (TCFD).

In 2019 we launched an internal campaign to attend company AGMs and ask a question of the Board and this has included on TCFD reporting and on scenario planning.


SG 15. Allocation of assets to environmental and social themed areas

15.1. 貴社にて、特定の環境および社会をテーマとする分野に基づいてファンドに資産を配分したり、ファンドを運用しているかどうかについて明示してください。

15.2. 環境および社会をテーマとする分野に投資された合計運用資産(AUM)の割合を明示してください。

39 %

15.3. 貴社が投資しているテーマ分野を明示のうえ、AUMに対する特定の資産クラスの割合を記載し、その内容を簡潔に説明してください。

分野

投資している資産クラス

82 % (AUMの)
4 % (AUMの)
8 % (AUMの)
6 % (AUMの)

簡潔な説明および投資尺度

We have specific thematic allocation to clean technology implemented through specialist teams for infrastructure, public and private equity.

We have flagged this under infrastructure as this is the asset class under which the most intense increase in allocation is occurring.

We set ourselves the target of at least 25% of our investments in clean technology and other sustainable opportunities. We currently have in the region of 30%.

Investments include;

  • Property opportunities targeting energy efficiency, urban regeneration and sustainability
  • Venture capital funding the next generation of technologies that provide new solutions –such as electric vehicles and LED lighting
  • Long term sustainable infrastructure, such as renewable energy and energy efficiency
  • Listed companies demonstrating best practice in sustainability, improving efficiency and reducing social and environmental impacts

 

投資している資産クラス

11 % (AUMの)
4 % (AUMの)
51 % (AUMの)
34 % (AUMの)

簡潔な説明および投資尺度

Please see description in Energy Efficiency above.

We use the FTSE sustainability classifications (and are mindful of the new EA taxonomy going forwards).

投資している資産クラス

8 % (AUMの)
55 % (AUMの)
37 % (AUMの)

簡潔な説明および投資尺度

The majority of EAPF's property investments contribute to and are rated by GRESB and achieve 'Green Star' (highly rated) standard.

A particular example is our investment in the Low Carbon Workplace Fund.  The Fund's objective is to acquire under-managed UK office properties and to refurbish them with the explicit goal of improving their environmental performance.  The Fund was launched in March 2010 and at 31 December 2019, it held 7 refurbished properties with a market value of £261.5m.  The assets, on average, have enjoyed a 67% increase in EPC rating since acquisition by the Fund and all properties are rated ‘Excellent’ by BREEAM.

投資している資産クラス

44 % (AUMの)
4 % (AUMの)
31 % (AUMの)
21 % (AUMの)

簡潔な説明および投資尺度

To ensure the investment followed an ESG approach aligned to that of EAPF, The Townsend Group in conjunction with EAPF negotiated a set of ESG investment criteria which all investors will benefit from. This included an undertaking to have investments FSC, PEFC or equivalent certifications in place; no investments in natural tropical rainforests or conversions; no investments in the Amazon Biome and other areas supporting predominantly high cerrado; no investments which would lead to resettlements and/or deterioration of socially/culturally important sites; and ensuring progress is reported annually on ESG matters.

投資している資産クラス

44 % (AUMの)
4 % (AUMの)
31 % (AUMの)
21 % (AUMの)

簡潔な説明および投資尺度

We Invest in agriculture through professionally managed funds.  Key issues include concern over “land grab”, or more generally growing high value groups in stressed situations, as well as management issues such as water use, run off, and chemical use. Livestock production, particularly cattle, has particularly significant environmental impacts.

In guidelines we provide to the manager selecting the funds we include the requirement to apply the following frameworks;

  • The Principles for Responsible Investment in Farmland
  • The UN-PRI established a Farmland Working Group to address these concerns and to incorporate existing work done by a group of institutional investor signatories to the PRI on the topic of farmland investment.
  • UN Committee on World Food Security (CFS) Voluntary Guidelines on Tenure
  • The Voluntary Guidelines represent significant progress made in the governance of natural resources and food security.
  • Roundtable for Sustainable Palm Oil (RSPO)

15.4. 含めたい補足情報があれば、添付してください。 [任意] 



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