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Genus Capital Management

PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities

ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
97.6 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
2.4 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.

Genus has funds implementing integration, screening, and thematic ESG incorporation.  For integration, ESG metrics have an influence on selection and weighting of securities in our portfolios.  Our Fossil Free portfolios have industry, product, and negative controversy screens.  All funds have integration and at least one ESG screen.  Then our Genus Fossil Free High Impact Fund has integration, screening, and strives to make high levels of impact based on sustainable themes.

To implement these strategies, we take a quantitative approach use multiple ESG data providers

We have chosen these strategies based on client needs and our performance and ESG research.   

 

 

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]


LEI 02. Type of ESG information used in investment decision (Private)


LEI 03. Information from engagement and/or voting used in investment decision-making (Not Completed)


(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

Description

Examples of negative screening in our Fossil Free Funds,

Product: Tobacco

Activity: Oil & Gas exploration

Sector: Energy sector

Environmental and social practices and performance: High carbon emissions intensity

Corporate Governance: Poor Governance ratings by ESG data providers

Screened by

Description

In our Genus High Impact Fund, we only include stocks with high environmental and social impact. We use an ESG data provider to build a universe of the most impactful public equities.  Then we measure the positive impact, based on Sustainable Development Goals, through a secondary ESG data provider.

 

Screened by

          We screen out companies that have significant controversies which include non-compliance with norms.
        

Description

When building our investment universe, we screen out companies that have significant controversies.  Some of the controversies include non-compliance with norms, however, we do not specifically screen by norms.

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

Screening criteria was established based on discussions with clients and in-depth research.  Then, for many of the screens, we have performed backtests to determine their effects on risk/return. They are reviewed on an ad hoc basis and we will make ad hoc changes if issues arise.  The criteria is disclosed to clients upon request.


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.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


LEI 06. Processes to ensure fund criteria are not breached (Private)


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]


(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
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]


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.

09.3. 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.

09.6. Additional information. [Optional]


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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