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British Columbia Public Service Pension Board of Trustees

PRI reporting framework 2020

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income

アクティブ運用している債券におけるESGの組み入れ

実施プロセス

FI 01. Incorporation strategies applied

以下を記載してください。 (1)組織でアクティブ運用する債券投資について、どのESG組み入れ戦略や組み合わせを使用しているか(2)各戦略が適用されるアクティブ運用債券投資合計の割合(+/- 5%)
SSA
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
100 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
社債(金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
100 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
社債(非金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
100 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%

01.2. 特定のESG組み入れ戦略を選択している理由と、使用する戦略の組み合わせを説明してください。

The combination of screening and integration of ESG factors is a critical component to identifying and managing the credit risk associated with our investment agent, BCI's, fixed income holdings. Screening from BCI's vendors provides an initial high level overview of ESG issues with specific issuers. As BCI delves deeper into potential investment opportunities, integration becomes a more critical component of its process and allows BCI to identify further issues and provide insights into the company's performance.

For mortgage holdings, BCI has developed a risk rating process that incorporates ESG factors as a contributor to the evaluation and pricing methodologies when identifying and managing credit risk. This process continues to evolve as new information becomes available. Integration of new strategies are tested and reviewed before implementation.

01.3. 補足情報 [任意]


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. 組織のESG調査プロセスの堅牢性を確保する方法を記載してください。

具体的に記載してください

          ESG research by external providers is regularly benchmarked for quality against other providers by our investment agent, BCI.
        

03.2. ESG情報または分析を投資チーム内で共有する方法を記載してください。

03.3. 補足情報 [任意]

BCI includes ESG as a component of their risk assessment and credit research is then integrated into BCI's investment decision making process. For Private Credit, the ESG analysis is a required component of all investment recommendations and is a standard agenda item for all of BCI's investment committee meetings.


A) 実施:スクリーニング

FI 04. Types of screening applied

04.1. 実施するスクリーニングの種類を記載してください。

当てはまる項目を全てを選択してください
SSA
社債(金融)
社債(非金融)
ネガティブ/ 排他的スクリーニング
ポジティブ/業界最高のスクリーニング
基準に基づくスクリーニング

04.2. 組織内でアクティブ運用している債券に適用するスクリーニングのアプローチを記載してください。

Across our investment agent, BCI's, assets, including Fixed Income, BCI excludes from their investment universe companies whose activities would violate the Anti-Personnel Landmines Convention or the Convention on Cluster Munitions. Furthermore, for corporate bonds (financial and non-financial) and private credit, certain industries and companies are avoided based on business involvement concerns.

For positive/best-in-class screening, BCI tracks the investable universe of green/social/sustainable bonds and when an issuance meets BCI's investment criteria from a credit and valuation perspective, they assesses the bond framework, second/third party opinion or certification and overall sustainability disclosure of the issuer to opine on positive E&S impacts. In addition, in the corporate (non-financial) investment grade space, BCI identifies companies that obtain high scores to the CDP disclosure frameworks.

04.3. 補足情報 [任意]


FI 05. Examples of ESG factors in screening process (Private)


FI 06. Screening - ensuring criteria are met

06.1. 債券投資においてファンドスクリーニングの基準に違反がないことを確認するために組織が使用しているシステムを記載してください。

スクリーニングの種類
ネガティブ/排他的スクリーニング​

その他

          Our investment agent, BCI's, exclusion list for Landmines and Cluster Munitions is communicated and shared with all of their investment staff.
        
ポジティブ/業界最高のスクリーニング

06.2. 補足情報 [任意]


C) 実施:ESG問題の統合

FI 10. Integration overview

10.1. ESGを従来の財務分析に統合するアプローチを説明してください。

Our investment agent, BCI has an ESG component in their risk analysis and credit research which is integrated into their investment decision making process. BCI's fixed income teams (including bond and private credit but excluding mortgages) recently increased engagement with BCI's team of dedicated ESG professionals to improve their understanding and integration of evolving ESG issues. Even when ESG factors are not sufficient to warrant an exclusion of issuers and companies, BCI assesses as part of their research process the potential for ESG factors to produce negative credit outcomes. In credit research, BCI is much more focused on potential negative outcomes as part of their process irrespective of if potential outcomes are ESG related or not due to the asymmetric nature of the asset class. BCI's teams also track and assess controversies related to ESG issues. In 2019, BCI implemented a portfolio monitoring process that tracks daily negative news coverage for issuers in the portfolios.

10.2. 投資する債券の各種類に対してESG統合アプローチをどのように調整するのか説明してください。

SSA

BCI's SSA investments are predominantly limited to bonds issued by the Canadian federal government, provinces, municipalities and agencies or denominated in Canadian dollars. Credit rating agencies (CRAs) have increased the transparency of ESG integration into their ratings. BCI feels that governance and social factors that are material to credit worthiness are mostly captured by the CRAs, as well as priced in. While PMs consider environmental factors, BCI's processes could benefit from further formalization, especially should BCI consider new SSA issuers beyond their current exposure.

社債(金融)

BCI leverages some third party ESG providers as a general approach, and leverage sell-side research providers that BCI considers to have a strong ESG framework. Furthermore, for higher materiality issues in the bond space, BCI's Public Markets ESG team is engaged for in-house views and reviews.

社債(非金融)

BCI leverages some third party ESG providers as a general approach, and leverage sell-side research that BCI considers to have a strong ESG framework. Furthermore, for higher materiality issues in the bond space, BCI's Public Markets ESG team is engaged for in-house views and reviews.

For Private Credit, all new potential investments seek an ESG review from BCI's in-house team no matter the materiality threshold. When opportunities arise, BCI performs an initial assessment of the creditworthiness of a borrower. If the opportunity passes this initial test, it is then subjected to more intensive due diligence, including ESG considerations, and ultimately presented to a formal credit committee that approves the investment. Each investment recommendation includes an ESG section. BCI has passed on certain investments due to ESG concerns.

10.3. 補足情報 [任意]


FI 11. Integration - ESG information in investment processes

11.1. ESG情報が、通常、投資プロセスの一部としてどのように使用されるのか記載してください。

当てはまるものをすべて選択してください
SSA
社債(金融)
社債(非金融)
ESG分析をファンダメンタル分析に組み込んでいる
ESG分析が発行体の内部信用評価を調整するために利用される
ESG分析が予想財務業績および将来キャッシュフロー予測を調整するために利用される
ESG分析が発行体の同業グループと比較したランキングに影響する
発行体のESG債スプレッドおよび同セクター企業に対するその相対価値が、すべてのリスクが織り込まれているか否かを把握するために分析される
各種デュレーション/満期の発行体債券へのESG分析の影響が分析される。
感度分析およびシナリオ分析が、ベースケースとESG組み込み証券評価の差を比較する評価モデルに適用される
ESG分析が、ポートフォリオのウェイティング決定に組み込まれている
会社、セクター、国、通貨が、ESGエクスポージャーの変化およびリスク制限の違反についてモニタリングされる
ESGリスクが大きい証券についてポートフォリオのESGプロファイルが検討され、ベンチマークのESGプロファイルと比較して評価される
その他(具体的に記載してください)

11.2. 補足情報 [任意]

To facilitate our investment agent, BCI's, reporting in line with TCFD recommendations, BCI calculates a carbon footprint of their corporate bond portfolio (financial and non-financial). The overall carbon footprint is compared to that of the performance benchmark.


FI 12. Integration - E,S and G issues reviewed

12.1. 組織の統合プロセスでESG問題をどのように検討するか示してください。

E(環境)
S(社会)
G(ガバナンス)
SSA

E(環境)

S(社会)

G(ガバナンス)

社債(金融)

E(環境)

S(社会)

G(ガバナンス)

社債(非金融)

E(環境)

S(社会)

G(ガバナンス)

12.2. 組織の統合プロセスでE/S/G要因を検討する方法を詳しく説明してください。

SSA

ESG forms a key part of our investment agent BCI's risk assessment and credit research to evaluate the credit worthiness of issuers.

社債(金融)

ESG forms a key part of our investment agent BCI's risk assessment and credit research that evaluates the credit worthiness of issuers. Even when ESG factors are not sufficient to warrant an exclusion of a corporate issuer BCI assess as part of their research process the potential for ESG factors to produce negative credit outcomes. In credit research BCI is much more focused on potential negative outcomes as part of their process irrespective of if potential outcomes are ESG related or not due to the asymmetric nature of the asset class.

社債(非金融)

Our investment agent BCI recently made an allocation to the private debt market. When opportunities arise, they perform an initial assessment of the creditworthiness of a borrower. If the opportunity passes this initial test, it is then subjected to more intensive due diligence, including ESG considerations, and ultimately presented to a formal credit committee that authorizes the investment. An ESG section is a required component of all investment recommendations that come to the committee.

12.3. 補足情報 [任意]


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