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Osmosis Investment Management

PRI reporting framework 2020

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

Osmosis investment & research team consists of experienced portfolio management & environmental research specialists who are at the forefront of integrating sustainability data into investment portfolios. Osmosis environmental research team has extensive experience in understanding corporate environmental performance and how it pertains to the balance sheet of a business. They are supported by a senior management team with decades of experience.

 Osmosis has three Portfolio Managers who not only share responsibilities for all the portfolio management, but have significant levels of expertise in utilising the Resource Efficiency signal generated from the MoRE model in portfolio construction.  All portoflio managers have consierable expertise,  with in excess of 40 years combined expereince of working with environmental data and portfolios. 

The Osmosis environmental research process is headed up by the former Head of Research at Trucost and joined Osmosis at the beginning of 2014 to enhance the environmental database research.  In early 2019 we added further resource  from the Carbon Disclosure Project – the global environmental reporting organisation joined the team to further develop the Osmosis proprietary research process and bring it expertise assessment methodologies for corporate disclosure on climate change, water security and deforestation. Whilst the research team speciality is within the disclosure and standardisation of the environmental data, the PMs are actively involved in work involving the enhancement of the signal to strengthen its explanatory power in justifying forward looking firm value.  This understanding of how the Resource Efficiency factor signal is implemented within the portfolios is key to driving forward the research process. There are five research analysts who specialise across their respective industries, collecting and standardising the respective environmental disclosures of energy and water consumption and waste creation.

The collation of data is a manual process whereby the individual reports are reviewed and the data standardised by the analysts prior to acceptance by Stefano before inclusion within the database.  Environmental data does not have a disclosing standard such as GAAP or IFRS and thus requires significant amount of work to standardise the data to the proprietary economic framework developed by Osmosis.

The underlying environmental data is annually observed; however, the data is disclosed at multiple points during the year due to the different reporting cycles each company adopts. 

At the start of each month, the anticipated work load for the updates is calculated and the work is normally complete within the first 2 weeks of the month.  This does, however, vary from month to month based upon the disclosure levels as there are naturally some months where there are greater amounts of raw data points to analyse. 

Once the companies updates are completed, the remaining time of the analysts is allocated to perform additional research projects of this vary from case study analysis, company engagement and the enhancement of the “economic value created” numerator within the Resource Efficiency signal.

Often the PMs are working on additional projects in tandem with our underlying clients and projects have included:

- Analysing dividend resilience of Resource Efficiency low volatility portfolio vs low volatility benchmark
- Implication of Resource Efficiency & Quality
- Resource Efficiency in the Low Volatility signal
- Resource Efficiency and correlation of other long-term drivers of return

 

Finally, as the firm continues to grow the management and board recognise the requirement for continued investment into the research function. Reinvestment is continuous and includes investment into staff, data and infrastructure.

All functions report into the CEO , who has overall responsibility for the strategic direction of the firm and oversight of all responsible investment activities.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

14 Number

07.4. Additional information. [Optional]

All Osmosis strategies are driven by the outcome of the Model of Resource Efficiency.  From the definition above, all staff apart from compliance and finance have been included as all dedicated to responsible investment.


SG 07 CC. Climate-issues roles and responsibilities

07.5 CC. Indicate the roles in the organisation that have oversight, accountability and/or management responsibilities for climate-related issues.

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Risk Officer (CRO), Investment Committee

Portfolio managers

Investment analysts

Dedicated responsible investment staff

Investor relations

07.7 CC. For management-level roles that assess and manage climate-related issues, provide further information on the structure and processes involved.

All Osmosis strategies are driven by the outcome of the Model of Resource Efficiency.  From the definition above, all staff apart from compliance and finance have been included as all dedicated to responsible investment.


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Portfolio managers

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investment analysts

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Dedicated responsible investment staff

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investor relations

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.


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