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PRI reporting framework 2020

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


LEI 01. Percentage of each incorporation strategy

01.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
100 %
アクティブ運用している上場株式の合計 100%

01.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

To ensure compliance with our ethical and environmental values, qualitative esg analysis is conducted across all new holdings prior to investment. Companies are screened for their performance against material environmental, social and governance factors prior to investment. Along with internal research, U Ethical utilises MSCI ESG research, broker reports, ISS governance platform, news sources and other relevant sources. The relevant ESG factors will vary by industry and company, we use the MSCI ESG scorecard data for each security to ensure the most material risks for each individual company are considered. Qualitative ESG analysis also helps us to ascertain whether the company has any practices or products which could breach our negative screening policy.

We choose this strategy to ensure that only companies with strong ESG credentials come through in our investable universe - that is companies with ESG ratings BBB in the International context, B in the domestic Australian context. This is the most appropriate strategy for us - due to limited resource we lean on available, quantifiable ESG ratings where possible.

01.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]

We incorporate ESG analysis and also ESG controversy screening. U Ethical monitors ethical controversies to ensure that companies continue to comply with the Ethical Investment Policy. The team uses a range of sources to monitor controversies including MSCI ESG Manager alerts, ISS governance research, broker reports, news publications, Factset, industry bodies (RIAA, PRI, ACCR) and relationships with non-for-profit organisations such as the Uniting Church of Australia Justice for International Mission Unit. 

All companies with a 'Very Severe' MSCI controversy rating either ongoing, or within the last 3 years, are likely to be screened out. If a current holding receives a Very Severe controversy rating this is discussed in our Portfolio Management Meeting. Any proposed addition of a company to the U Ethical exclusion list is subject to Investment Committee approval, although companies may be divested following discussion at the quarterly Portfolio Management Meeting.

We also run daily alerts on controversies - both holdings and the wider investable universe. This is monitored by both the Investment Team and Ethics & Impact Manager.
We publish an excluded stock list on to the website alongside the reason for exclusion, which includes companies excluded due to either their industry, practices or controversies. 

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

LEI 03. Information from engagement and/or voting used in investment decision-making (Private)

A) 実施:スクリーニング

LEI 04. Types of screening applied

04.1. 組織内でアクティブ運用している上場株式に適用するスクリーニングの種類を記載し、説明してください。




Our negative screen evaluates a company’s products, services and practices to ensure they are not detrimental to society or the environment. U Ethical avoids investing in companies that:

- cause unacceptable damage to the natural environment

- infringe on human rights

- support oppressive regimes

- cause or perpetuate injustice and suffering

- have unacceptable occupational health and safety practices including disregard for minimum wage laws.

U Ethical also systematically excludes companies with operations in the following areas due to their inherent negative impacts:

- Oil, coal, gas (power generation, exploration, extraction)

- Uranium for non-medical uses

- Armaments

- Predatory lending

- Gambling

- Pornography and adult entertainment

- Animal cruelty

- Alcohol production

- Tobacco manufacturing

We recognise that there are occasions when companies inadvertently violate these principles and make genuine efforts to rectify this. Furthermore, we may choose not to exclude a company where a contravention of the principles constitutes less than 5% of the company’s revenue or earnings. In such instances, the contravention may be outweighed by significantly positive factors.



U Ethical screen out companies with below average ESG ratings across all portfolios. U Ethical recognises that ESG ratings are relative to sector peers and can be driven by policies and reporting capabilities rather than specific actions. Therefore, external ESG ratings are complemented by internal assessments to ascertain whether the company meets our ethical standards.

U Ethical also excludes a number of products and practices from its investable universe, which are deemed to be harmful to either society or the environment.

Positive companies are assesss through a UN Sustainable Development Goals framework. All portfolios strive for at least 10% exposure (although often it's much higher) to companies significantly contributing to the achievement of the goals.



Our portfolios are screened via MSCI ESG Manager for compliance with UN Global Compact Principles.

04.2. スクリーニング基準が変更された場合に顧客や受益者に通知する方法について説明してください。

We do not currently advise clients directly when there is an update to our investment policy/screening. We indirectly notify through a number of mediums:

Updating website pages with the most current investment policy
Sharing updates on our website in the form of blog posts
News shared across our LinkedIn page
As part of quarterly newsletters with feature articles on this
Calls with clients 

LEI 05. Processes to ensure screening is based on robust analysis

05.1. スクリーニングが徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを選択してください。

05.2. ESGスクリーニング戦略の一環で包括的なESG調査の対象となるアクティブ上場株式ポートフォリオの割合を示してください。

05.3. 第三者のESG評価がスクリーニング目的で更新される頻度を示してください。

05.4. 組織のESGスクリーニングを構築するための組織内リサーチを精査する頻度を示してください。

05.5. 補足情報 [任意]

The investment team receive daily alerts from third-party providers on the following

- Controversies related to current holdings

- Changes to ESG ratings

- Screening criteria is reviewed on a quarterly basis at the U Ethical Investment Committee. Any updates are subject to Investment Committee approval

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

C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. E・S・Gの各要因が投資分析の一環として体系的に調査されている、アクティブ運用の上場株式ポートフォリオの割合を記載してください。








08.2. 補足情報 [任意]

Companies are screened for their performance against relevant environmental, social and governance factors prior to and throughout investment. Along with internal research, U Ethical utilises third-party provider research, broker reports, governance platforms, news sources and many other relevant sources. The relevant ESG factors will vary by industry and company, we use a materiality scorecard for each security to ensure the most material risks for each individual company are considered. 

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

09.1. ESG統合が徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを記載してください。

09.2. 組織の統合戦略の一環で包括的ESG調査の対象になるアクティブ運用上場株式の割合を記載してください。

09.3. ESG統合戦略に使われる第三者のESG評価が更新される頻度を示してください。

09.4. ESG統合戦略に使われる組織内調査を見直す頻度を示してください。

09.5. ポートフォリオ・マネージャーがどのようにしてESG情報を保有し、使っているのか説明してください。

09.6. 補足情報 [任意]

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