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DNR Capital

PRI reporting framework 2020

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

実施プロセス

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。

For our Socially Responsible portfolio, we apply a screening and integration process over 3 stages:

1. Our best stock ideas are screened against four primary metrics:
     - Must not be involved in the production, distribution and sale of pornography as part of the core business.
     - Must not be involved in owning or operating a gaming related business, or manufacture and supply of gaming equipment and systems as part of the core business.
     - Must not be involved in the supply and distribution of weapons components as part of the core business.
     - Must not be involved in the manufacture and distribution of tobacco-related products as part of the core business.

In addition to the above, we also cater to clients demands for the screening out of Fossil Fuels, Animal Testing or Cruelty, Obesity and other ESG issues.

2. The companies that we are seeking to add, or that we currently hold, are then subject to an internal ESG Research framework, which grades each stock on a 5-point scale.

The analysis is performed by the analyst that covers the company in question, where they source information from company disclosures, an internal ESG resource, broker research and Sustainalytics research.

The framework takes in to consideration many factors including:
Environmental:
     - Environmental impact of operations
     - Exposure to cost of pollutants
     - Investment in environmental efficiencies
     - Environmental management frameworks
     - Environmental incidents and controversies
     - Waste and hazardous materials processing
     - Supply chain sustainability
     - Climate change Awareness and preparedness

Social:
     - Social incidents and controversies
     - Human capital management
     - Operational health and safety
     - Supply chain ethics
     - Code of conduct enforceability
     - Product incidents and controversies
     - Data privacy incidents and controversies

Governance:
     - Business structure and activity alignment
     - Company culture
     - Board characteristics
     - Equity ownership
     - Remuneration and incentives
     - Capital management
     - Stewardship of the business
     - Risk and control framework
     - Shareholder communication
     - Governance incidents and controversies

In addition to the scoring framework, we also consider additional merit to companies that are involved in socially responsible activities such as:
     - Renewable resources
     - Waste management
     - Healthcare
     - Public transport
     - Social infrastructure
     - IT solutions
     - Environmental technologies and solutions
     - Education
     - Compliance

3. Once a company has been scored by the analyst, the research is put to the Socially Responsible Committee on a monthly basis, where the analyst is asked to present their case, with reports from brokers and Sustainalytics provided for context and comparison. In addition to its function of approving changes to the portfolio from and ESG perspective, the Committee also:
     - Reviews the portfolio's ESG metrics
     - Reviews the ESG metrics of the individual companies in the portfolio
     - Discusses ESG thematics presented by the ESG analyst and how they could impact the portfolio or prospective additions to the portfolio
     - Discusses engagements that have occurred during the month and engagements that should be organised for the month ahead given the content of the meeting.

We believe that this process succeeds in three key areas:

1. We eliminate securities that have structural ESG headwinds as a result of their core business activities.
2. We ensure that each analyst is considering a wide range of ESG issues when modelling their business and establishing their thesis.
3. We maintain oversight of the process and ensure that there is sufficient rigour around the ESG quality of the portfolio.

 

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]


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。

スクリーニングの種類

スクリーニング実行者

説明

DNR Capital's Socially Responsible portfolio avoids investment in companies that are judged to have a direct involvement in pornography, gambling, armaments, tobacco, alcohol and obesity.  We form a judgment as to whether or not the activity in question forms a direct or core part of the business.  By "direct" or "core" we mean that the company is involved in the manufacture, supply or distribution of the product or the provision of the service. We also extend this to other areas including Fossil Fuels at the client's request.

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。

​The screening criteria is subject to annual formal reviews but from time to time we will re-evaluate the criteria if there is confusion as to whether a company falls into the Direct or Indirect categories. Those categories are relevant to the screening of:

  • Pornography
    • Direct - Production, distribution and sale of pornography as a core business
  • Gaming
    • Direct - Core business of owning or operating a gaming related business or manufacture and supply of gaming equipment and systems.
  • Armaments
    • Direct - Supply and distribution of weapons components to Defence Forces or any other business/individual.
  • Tobacco
    • Direct - Manufacture and distribution of tobacco-related products.

Our ESG policy is available publicly on our website.


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]


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。

ESG問題

影響を受ける割合
E(環境)

E(環境)

S(社会)

S(社会)

コーポレートガバナンス

コーポレートガバナンス

08.2. 補足情報 [任意]


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)


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