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Insurance Australia Group (IAG)

PRI reporting framework 2020

You are in Indirect – Manager Selection, Appointment and Monitoring » Appointment

Appointment

SAM 04. Appointment processes (listed equity/fixed income)

04.1. Indicate if in the majority of cases and where the structure of the product allows, your organisation does any of the following as part of the manager appointment and/or commitment process

04.2. Provide an example per asset class of your benchmarks, objectives, incentives/controls and reporting requirements that would typically be included in your managers’ appointment.

Asset class

Benchmark

ESG Objectives

          IAG  may exclude or limit investment in a particular company or group of companies. Where relevant these exclusions or limitations will be included in relevant investment management mandates. These circumstances may include:
• ESG risks to the company that are not, or cannot be, appropriately or adequately reflected in the risk-adjusted return
• The investment being inappropriate to the extent that it may have a negative impact on IAG’s reputation
• The investment/issuer failing to recognise or strategically address ESG risks
        
          IAG has mandated climate related restrictions or targets in relation to external investment mandate for equities, global convertible bonds and bank loans.
        
          IAG engages with external managers annually to discuss portfolio holdings identified with higher ESG risks, i.e. how ESG risk is considered and what engagement measures have been undertaken with these companies with a view to encouraging mitigation of ESG risks?
        
          IAG will review the external investment manager’s policy on proxy voting and use of proxy votes as part of the initial due diligence and ongoing monitoring of the external investment manager. Where appropriate investment mandates specify proxy voting reporting requirements.
        
          IAG has implemented a shift investments to companies that have a lower exposure to climate-related risks or a forward-looking strategy to manage these risks across its listed equity portfolios and convertible bonds portfolio.
For further details refer to IAG Climate related financial disclosure for 2019 and IAG Climate Action Plan
wwwt.iag.com.au/sites/default/files/Documents/Safer%20Communities/IAG-Climate-Action-Plan-FY19-scorecard.pdf.
www.iag.com.au/safer-communities/esg-commitments-and-performance/climate-related-disclosure-2019
        
          IAG Asset Management’s Guidelines for Investment Manager Due Diligence and Implementation and Responsible Investment Policy outline the overall requirements for the appointment, due diligence  and ongoing monitoring of external investment managers.
        

Incentives and controls

Reporting requirements

04.3. Indicate which of these actions your organisation might take if any of the requirements are not met

04.4. Provide additional information relevant to your organisation`s appointment processes of external managers. [OPTIONAL]

          
        

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