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Empira

PRI reporting framework 2020

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

ESG incorporation in actively managed fixed income

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
Corporate (non-financial)
100 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

As a fund manager of private real estate debt funds, investments are screened on the basis of positive and negative criteria and an investment is made according to the result.  Through ongoing controlling of the underlying assets, the defined ESG criteria are constantly monitored and action can be taken accordingly. This approach makes it possible to identify ESG-related risks and opportunities as early as possible and to act accordingly.  EMPIRA sees ESG as a development process that is subject to continuous adaptation. The underlying catalogue of criteria is therefore also constantly analysed and further developed. 

01.3. Additional information [Optional].


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

03.2. Describe how your ESG information or analysis is shared among your investment team.

03.3. Additional information. [Optional]

This reporting refers to private debt real estate investments where the investment process differs from "fixed income" investments. Empira invests in mezzanine, whole-loan and JV financing through the Luxembourg-based fund manager (a subsidiary of Empira AG). During the investment process, information about the potential project partner is collected and evaluated. On the other hand, the project (location, feasibility, initial investment, plans, etc.) is evaluated. This information is not publicly available for each financing request and is subject to exclusivity. Therefore, each individual investment must be considered separately and no centralised database is maintained. 

 


(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
Corporate (non-financial)
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

04.2. Describe your approach to screening for internally managed active fixed income

Below is a negative list of criteria that EMPIRA takes into account when analysing a financing application/financing check:

(-) Negative catalogue:
- Real estate and property projects and borrowers which are connected with violation of human and labour rights
- Real estate and property projects and borrowers related to gambling and pornography
- Real estate and property projects and borrowers in connection with the promotion of fossil fuels (including filling stations and coal-fired power plants) and nuclear energy
- Real estate and real estate projects that are already contaminated (including contaminated land with contaminated sites, buildings with contaminated construction material (asbestos etc.))

Below is a positive list of criteria that EMPIRA takes into account when analysing a financing application/financing check:

(+) Positive list:

Environmental
- Safety (natural hazards such as earthquake hazards, flooding)
- radiation / electrosmog / radon concentration
- Mobility offers (e.g. public transport, car sharing, bicycle offers)
- Waste from operations/use (composting, waste, recycling)
- Building fabric

Social
- basic services (schools, childcare)
- Sufficient shopping facilities
- Accessibility/connection to public transport
- Indoor air (solvent emissions, air pollution with nitrogen oxides, fine dust)
- Local recreation facilities
- Noise pollution 
- Medical care/hospitals

 

04.3. Additional information. [Optional]


FI 05. Examples of ESG factors in screening process (Not Completed)


FI 06. Screening - ensuring criteria are met

06.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Negative/exclusionary screening

other description

          Analysis is performed to ensure that Borrower meet screening criteria
        
Positive/best-in-class screening

other description

          Analysis is performed to ensure that Borrower meet screening criteria
        

06.2. Additional information. [Optional]


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