This report shows public data only. Is this your organisation? If so, login here to view your full report.

United Nations Joint Staff Pension Fund

PRI reporting framework 2020

Export Public Responses
Pdf-img

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%)
95 %
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%)
2.0 %
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%)
3.0 %
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。

Our journey on the path of Sustainable Investing

We began our journey towards Sustainable Investing by restricting investments in tobacco and armaments decades ago, reflecting the values of the United Nations. OIM became a signatory to the PRI (Principles for Responsible Investment) in 2006. This was followed by investing in the first Green bonds in 2008 issued by the World Bank, and being the catalyst investor in Low Carbon Exchange Traded Funds in 2014. In recent years, OIM has been transitioning from a program of ESG related activities to embarking on a process of integrating ESG considerations across all asset classes. OIM believes that portfolios which integrate material ESG metrics into their investment decision-making process, supported by active engagement, have the potential to provide returns that are superior to those of conventional portfolios while exhibiting lower risk over the long term. This view is supported by several published academic studies and our own research. We see evidence that ESG considerations are beginning to enter the mainstream investment world. Rating agencies are implementing ESG factors that could impact the credit rating of corporate issuers. Fitch stated recently that ESG Relevance Scores reveal that ESG factors influence 22% of its current non-financial corporate issuers. ISS reports an increasing number of ESG related items on the proxy voting agendas of corporates.

The objective of our Sustainable Investing approach is to integrate ESG considerations in our investment decision-making process across all asset classes

OIM began introducing ESG metrics into the existing investment process, by giving portfolio managers a broader set of tools to consider in their investment decisions. For internal actively managed public equity portfolios, we are piloting a four-stage process, tailored around PRI’s recommendations. In 2018, OIM implemented a new custom global equity index which can serve as a benchmark for other global equity investors. This index takes into account investment restrictions on companies which exceed a defined threshold of revenue generated from Tobacco or Weapons. Within Fixed Income, we have been increasing our portfolio of Green bonds in line with net outstanding issuance in this market segment. For private markets, OIM integrates a comprehensive analysis of ESG issues into the due diligence process. 

  1. ESG Index and Universe Screening: Reputational risk management and controversies screening individual companies radar
  2. Portfolio Analytics: Carbon foot printing, customized controversies screening, dead asset analysis and Sustainable Development Goals (SDG) impact analysis
  3. Robust ESG Metrics Database: Sourcing and consolidating material ESG data points to enhance fundamental and valuation analysis, both ex-post and ex-ante
  4. Company Analysis: Qualitative and quantitative peer analysis on company and prospective holdings integrated into investment rationale and company risk due diligence
  5. Corporate Engagement: ESG material summary conclusions validating quantitative and  qualitative empirical conclusions from corporate one-on-one engagements reconciled to proxy voting action and corporate strategy. OIM has entered into strategic partnerships with two well-known global engagement providers.


Technology and the availability of alternative data sets enables greater integration of ESG considerations in investment decisions

Integration of ESG considerations requires new tools and alternative datasets that are not conventionally used for supporting investment decision-making. OIM, leveraging its partnerships with key data providers, has constructed an internal proprietary ESG database, which helps to distill material ESG data by separating the noise from the signal and provide the investment teams with more robust screening capabilities. Using the signals obtained from various alternative datasets such as RepRisk, MSCI ESG, etc , the Portfolio Managers get a better sense of the tail-risk of their portfolio holdings and potential opportunities in the market.

We believe that combining both financial and alternative metrics would increase the odds of improving the risk-return profile of our portfolio over the long run, compared to the conventional investment approach.

Our Sustainable Investing approach is beginning to incorporate forward looking methodologies in evaluating the impact of climate change on our investment portfolio

Investors need new tools that integrate energy economics, alternative climate scenarios, and traditional financial data to evaluate return and risk exposures related to climate change and new sources of energy. These tools could help investors evaluate the climate change transition risk as well as achieve greater climate sustainability in their investment portfolios. OIM recently signed a strategic partnership with a leading provider of predictive climate analytics. Our efforts to signal our commitment to a low carbon strategy through passive investment in low carbon Exchange Traded Funds in 2014 was just the first step in addressing the impact of climate change. With this partnership, we are now planning to move to an active strategy by using a highly sophisticated climate and energy simulation model to assess companies’ ability to adapt to various carbon emission scenarios. We have already integrated the “E” score provided by an external predictive climate analytics provider as an input factor in our proprietary ESG investment-decision supporting tool. This "E" score helps to quantify the portfolio's climate transition risk.

UN Sustainable Development Goals (SDG's)

OIM is conducting research with leading ESG academics on developing quantifiable SDG scores by utilizing artificial intelligence (AI) to leverage big data and systematically measure companies’ impact on the SDGs. This research will aim to provide empirical evidence hopefully addressing the widespread perception that there is a trade-off between financial returns and incorporating ESG or SDG considerations in investment decisions. It will strengthen our understanding of the interdependencies between a firm’s long-term economic value and its societal impact. OIM has compiled a detailed white paper on this topic and will publish it shortly. This paper will serve as a catalyst for a broader discussion among long-term institutional investors.

Engagement through encouragement

The last pillar of our Sustainable Investing approach is engagement. An active sustainable voting policy combined with engagement can result in more effective and durable change consistent with the UN’s values. OIM believes in a collaborative and constructive dialogue with company management to achieve mutually beneficial outcomes. The Fund is a signatory of the Climate Action 100+ initiative, has a strategic partnership with a leading engagment provider, and plans to strengthen its engagement efforts further.

 

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]

 A key part of our approach to sustainable investing is the belief that portfolios which integrate material ESG metrics in their investment rationale have the potential to provide returns that are superior to those of conventional portfolios, while exhibiting lower risk over the long term. This view is supported by academic research and literature. Technology and nonfinancial data enables systematic ESG integration and drives transparency. ESG integration requires new tools and alternative innovative datasets that are not conventionally used for supporting investment decision-making. OIM, leveraging its partnerships with key data providers, has constructed an internal proprietary ESG database, which helps it to distill material ESG data by separating the noise from the signal and provide the investment teams with more robust screening capabilities. Using the signals obtained from various alternative datasets such as RepRisk, MSCI ESG, etc, the Portfolio Managers get a better sense of the tail-risk of their portfolio holdings and potential opportunities in the market.

ESG strategies are incorporated at various levels:

  1. Policy Level: IPS ESG Policy Statement 
  2. Fund Level: ESG Leadership Funds / Passive ESG Approach 
  3. Portfolio Level: ESG / Carbon Footprint Measurment & Mitigation / Screening / Tail-risk analysis
  4. Company Level: ESG Factor Analysis & Measurement 
     

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

Tobacco, thermal coal, and armament restrictions. 

OIM has developed a Thermal Coal Divestment Strategy that will be implemented this year and will stay in effect going forward. As per the strategy, the fund will not be investing in companies deriving more than 10% of their revenues from the mining of thermal coal.

 

スクリーニング実行者

説明

OIM has developed an internal methodology to enable both positive as well as negative screenings of securities. We have developed dashboards for all the equity teams on which the teams can monitor various ESG as well as fundamental metrics together corresponding to each of the securities in their relevant benchmarks/ portfolios. These dashboards allow the teams to screen securities based on both ESG and fundamental factors. The ESG metrics being provided are sourced from the best in class ESG data providers such as MSCI ESG, RepRisk, Bloomberg, SASB, Entelligent, Arabesque, ISS Proxy Voting.

OIM is not only holistically integrating ESG analysis into current process, but has also applied complete system metrics to the past eights years on the active equity portfolio thereby constructing a history from which the Fund can measure its progress retroactively against itself and peers.

スクリーニング実行者

説明

OIM examines social, environmental, governance, and ethical issues on a case-by-case basis, taking special regard for the effects proposed actions will have on the corporation’s long-term value, costs and the financial well being of beneficiaries.  Risks to the company’s short-and/or long-term value arising from social, environmental, governance and/or ethical issues should be identified and assessed and companies should institute policies and procedures aimed at mitigating the risks associated with these issues.

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 ultimately decided upon by the Representative of the Secretary-General for the Investments of the UNJSPF in consultation with the Fund's Investments Committee and Office of Investment Management staff.


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 United Nations Joint Staff Pension Fund holistically integrates ESG into the entire lifecycle of the internal equity investment process. Honoring the Fund’s commitment to PRI, UNEP FI, and UNGC, as outlined in the IPS, the OIM considers ESG as standard due diligence risk exercise within the overall investment process, including risk monitoring, universe selection and stock selection.


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


B) 実施:テーマ

LEI 07. Types of sustainability thematic funds/mandates

07.1. 組織が運用している、サステナビリティをテーマとするファンドやマンデートの種類を記載してください。

07.2. 組織でのサステナビリティをテーマとしたファンドのプロセスについて説明してください。 [任意]

Tobacco Security Restrictions:

Investments in companies that derive any revenue from the production of tobacco and that primarily deal with manufacturing and distribution of tobacco and tobacco related products are prohibited.

Armaments or other Military Equipments Security Restrictions:

The Fund does not invest in securities of companies that derive any revenue from the production of military weapons, weapons systems or weapons of mass destruction, including nuclear, chemical or biological weapons, or derive more than 10 per cent of their revenue from the production of customized components for purposes of the production of military weapons, weapons systems or weapons of mass destruction.

Thermal Coal Security Restrictions:

The Fund has developed a Thermal Coal Divestment Strategy that will be implemented this year and will stay in effect going forward. As per the strategy, the fund will not be investing in companies deriving more than 10% of their revenues from the mining of thermal coal.

https://oim.unjspf.org/report/unjspf-press-release-united-nations-joint-staff-pension-fund-announces-divestment-from-coal-energy-sector/

ESG Integration:

The United Nations Joint Staff Pension Fund holistically integrates ESG into the entire lifecycle of the internal equity investment process. Honoring the Fund’s commitment to PRI, UNEP FI, and UNGC, as outlined in the IPS, the UNJSPF considers ESG as standard due diligence risk exercise within the overall investment process, including risk monitoring, universe selection, and stock selection.


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]

Our approach to Sustainable Investing is entirely consistent with our fiduciary responsibility to meet our Long-Term Return Objective

Possible actions taken include asking the entities in which the Fund invests:  

1) Standardised reporting on ESG issues (using tools such as the Global Reporting Initiative)

2) Integration of ESG issues within their annual financial reports

3) Information regarding adoption of/adherence to relevant norms, standards, codes of conduct or international initiatives (such as the UN Global Compact)

4) Support shareholder initiatives and resolutions promoting ESG disclosure

​The United Nations Joint Staff Pension Fund holistically integrates ESG into the entire lifecycle of the internal equity investment process. Honoring the Fund’s commitment to PRI, UNEP FI, and UNGC, as outlined in the IPS, the UNJSPF considers ESG as standard due diligence risk exercise within the overall investment process, including risk monitoring, universe selection, and stock selection.


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。

          Perform detailed ESG factors based portfolio tail-risk analysis as well as find potential opportunities emerging from the improvements in companies' ESG metrics.
        

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]

The United Nations Joint Staff Pension Fund holistically integrates ESG into the entire lifecycle of the internal equity investment process. Honoring the Fund’s commitment to PRI, UNEP FI, and UNGC, as outlined in the IPS, the UNJSPF considers ESG as standard due diligence risk exercise within the overall investment process, including risk monitoring, universe selection, and stock selection.


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


Top