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

KBI Global Investors

PRI reporting framework 2020

You are in Strategy and Governance » ESG issues in asset allocation

ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

13.1. Indicate whether the organisation carries out scenario analysis and/or modelling, and if it does, provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

Describe We have used the PACTA tool that the PRI made available with the Two Degree Investing Initiative to run scenario analysis for all of our portfolios. The purpose was to assess the extent to which the portfolios were consistent with a Two Degree scenario, and to have a first look.

13.2. Indicate if your organisation considers ESG issues in strategic asset allocation and/or allocation of assets between sectors or geographic markets.

We do the following

13.3. Additional information. [OPTIONAL]


SG 13 CC.

13.4 CC. Describe how your organisation is using scenario analysis to manage climate-related risks and opportunities, including how the analysis has been interpreted, its results, and any future plans.

Describe

We have used the PACTA tool that the PRI made available with the Two Degree Investing Initiative to run scenario analysis for all of our portfolios.  The purpose was to assess the extent to which the portfolios were consistent with a Two Degree scenario, and to have a "first look" at what changes to the portfolios might be required to make them consistent.  Also we were interested to see what opportunities (as well as risks) were present.

We have not, as yet, comprehensively incorporated this information into our investment process.

13.5 CC. Indicate who uses this analysis.

13.6 CC. Indicate whether your organisation has evaluated the potential impact of climate-related risks, beyond the investment time horizon, on its investment strategy.

Describe

We have used the PACTA tool that the PRI made available with the Two Degree Investing Initiative to run scenario analysis for all of our portfolios.  The purpose was to assess the extent to which the portfolios were consistent with a Two Degree scenario, and to have a "first look" at what changes to the portfolios might be required to make them consistent.  Also we were interested to see what opportunities (as well as risks) were present.

13.7 CC. Indicate whether a range of climate scenarios is used.

13.8 CC. Indicate the climate scenarios your organisation uses.

Provider
Scenario used
IEA
IEA
IEA
IEA
IEA
IRENA
Greenpeace
Institute for Sustainable Development
Bloomberg
IPCC
IPCC
IPCC
IPCC
Other
Other
Other

SG 14. Long term investment risks and opportunity

14.1. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following are considered.

14.2. Indicate which of the following activities you have undertaken to respond to climate change risk and opportunity

Specify the AUM invested in low carbon and climate resilient portfolios, funds, strategies or asset classes.

Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

Specify the framework or taxonomy used.

This figure encompasses our Energy Solutions strategy, which invests only in companies providing solutions to the global shortage of clean energy, and the clean energy portion of our Sustainable Infrastructure strategy, which again invests only in companies involved with sustainable energy infrastructure.  It also includes half of the AUM of our Water strategy, representing our estimate of the proportion of that portfolio which is related to low carbon or climate resiliency.

At this time, we do not use an external taxonomy, but all investments in these portfolios must be approved by the firm's Responsible Investing Committee as being appropriate for purpose.

14.3. Indicate which of the following tools the organisation uses to manage climate-related risks and opportunities.

14.4. If you selected disclosure on emissions risks, list any specific climate related disclosure tools or frameworks that you used.

1. We measure the carbon footprints of many of our portfolios using an outsourced provider, and report the data to our clients.

2. We use the services of Two Degrees Investing Initiative to review how our portfolios are aligned with a 2 Degree climate change scenario.

14.5. Additional information [Optional]


SG 14 CC.

14.6 CC. Provide further details on the key metric(s) used to assess climate-related risks and opportunities.

Metric Type
Coverage
Purpose
Metric Unit
Metric Methodology
Weighted average carbon intensity
          What is the portfolio’s exposure to carbon intensive companies?
        
          tons CO2e / $M sales
        
          Carbon intensity is the ratio of portfolio carbon emissions normalised by the portfolio's claim on sales.  Weighted average carbon intensity is the sum product of the portfolio weights and carbon intensities.
        
Carbon footprint (scope 1 and 2)
          What is the portfolio’s total carbon footprint?
        
          tons CO2e / $M invested
        
          Sum of all the emissions in the portfolio based on the portfolio's ownership share, expressed as per $1m invested.
        
Portfolio carbon footprint
          What is my portfolio’s normalized carbon footprint per million dollars invested?
        
          tons CO2e / $M Invested
        
          
        
Carbon intensity
          How efficient is the portfolio in terms of carbon emissions per unit of output?
        
          tons CO2e / $M sales
        
          This is the ratio of portfolio carbon emissions normalised by the portfolio's claim on sales.
        
Exposure to carbon-related assets
          What % of portfolio has exposure to carbon?
        
          % of portfolio in Materials, Utilities, and Energy sectors
        
          
        

14.8 CC. Indicate whether climate-related risks are integrated into overall risk management and explain the risk management processes used for identifying, assessing and managing climate-related risks.

Please describe

Climate change issues were considered as a risk for inclusion in the firm's overall risk framework.  However it was decided by the firm's executive commitee that it was not among the top risks for a 1-3 year time period ahead.

14.9 CC. Indicate whether your organisation, and/or external investment manager or service providers acting on your behalf, undertake active ownership activities to encourage TCFD adoption.

Please describe

We are active members of the Climate Action 100+ initiative, attending the launch event in New York and participating in several conference calls and reviews over the period since then, as well as being part of the lead investor group for several target companies.

Separately, we specifically prioritise climate change issues in our direct engagement programme and have requested TCFD  compliance and or CDP disclosure from many companies.


SG 15. Allocation of assets to environmental and social themed areas

15.1. Indicate if your organisation allocates assets to, or manages, funds based on specific environmental and social themed areas.

15.2. Indicate the percentage of your total AUM invested in environmental and social themed areas.

13 %

15.3. Specify which thematic area(s) you invest in, indicate the percentage of your AUM in the particular asset class and provide a brief description.

Area

Asset class invested

1.0 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

We have been a pioneer in thematic investing, investing in publicly traded equities of companies providing solutions to low carbon energy provision since 2000. We invest in clean tech providers in our Energy Solutions , Water , Global Natural Resources and Global Sustainable Infrastructure strategies.

Asset class invested

0.5 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

We have been a pioneer in thematic investing, investing in publicly traded equities of companies providing solutions to low carbon energy provision since 2000. Renewable Energy is a significant component of our Energy Solutions strategy.

Asset class invested

0.3 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

"Energy Efficiency" is a large portion of our Energy Solutions equity strategy.  

Asset class invested

0.1 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

Our Global Natural Resources strategy and our Global Sustainable Infrastructure strategy invest inter alia in companies providing solutions to the shortage of food and the need to ensure sustainable use of land. These include Agricultural producers, suppliers, processors and service providers.

Asset class invested

10 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

The KBI Water Strategy invests exclusively in companies striving to meet the world's demand for clean water. 

15.4. Please attach any supporting information you wish to include. [OPTIONAL]



Top