Our selection documentation focuses on the manager's investment strategy and their sustainable investment process, including but not limited to ESG integration. Our own investment strategy and our expectations of managers in terms of sustainable investment including ESG integration are directly included in relevant investment management agreements with managers and are covered in more detail in the subsequent questions.
We cover the following in our selection documentation:
- Approach to ESG including associated policies;
- People and resources, including ESG research sources;
- Integration of ESG into the investment process, including examples of how ESG matters, such as climate change and human rights, have impacted or are likely to impact the management of the portfolio;
- Their engagement with companies and proxy voting, as relevant; and
- Transparency, reporting and advocacy.
This formal assessment has a direct bearing on the final assessment of an investment manager’s suitability for the portfolio.