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Mercy

PRI reporting framework 2020

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

成果および結果

SAM 08. Percentage of externally managed assets managed by PRI signatories

08.1. 組織では、RIに関するベストプラクティスが保有資産の運用に確実に適用されるようどのようにして万全を図っているその内容を説明してください

方策

          During our update meetings with each existing manager, we encourage the use of socially responsible investing along with covering Mercy's policy. In addition, we always ask our existing managers whether there is any changes or updates to how the firm operates and approaches ESG. By asking about ESG often and requesting for managerial accountability, Mercy is exercising the responsibilities that comes with being an UNPRI signatory and an advocate on what both Mercy and UNPRI believe in.

During our China manager equity search, we asked each prospective manager regarding their ESG policy and stressed the importance of such policy for our organization. At the end of the process, some of the managers finished drafting ESG policies or were in the process of doing so.
        

08.2. 補足情報 [任意]

In addition to what is already being mentioned in Section SAM 08.1, Mercy is proactive in encouraging improved RI practices with existing investment managers. Mercy takes every opportunity during manager interactions to ask existing managers how they view, approach, and implement ESG into their investment process. Not all existing managers have ESG policy or implementation in place; however, Mercy engages the managers on the discussion of ESG regardless of where they currently stand.

With managers who have not given much thought on ESG, Mercy explains to the managers the importance of developing and fostering ESG awareness in one's portfolio and firm. Mercy often provides examples both from Mercy's internal ESG practices or from anonymous peers to allow a manager with no ESG practices in place to gain some insight and industry advice.

With managers who currently have ESG policy and implementation in place, Mercy learns about their best practices and shares with the managers what Mercy has been doing internally or has been observing from other managers in the space.

Mercy also encourages existing managers to promote their ESG practices to be recognized by more investors. For example, Mercy is an investor with an Opportunistic Debt Fund that finances affordable workforce housing building projects. Mercy's Director encouraged the portfolio manager to write an ESG white paper highlighting the impact of their fund in the workforce housing market, so existing and potential investors can see the social value that manager is able to generate in addition to the financial returns the manager is able to generate on a consistent year to year basis. This is an example of an emerging/smaller manager with limited ESG experiences or policies; however, they fundamentally incorporate ESG/impact in the assets they invest in and we encouraged them to bring awareness to other LPs. 

During our China equity manager search, we made sure to stress to the managers the importance of ESG for our organization and discuss their approach within the investment process. Requested all Finalist Managers to fill out Mercy’s SRI Due Diligence Checklist and shared with them a UNPRI write-up on ESG within Asia. Discussed the SRI responses and went over specific investment cases during our final due diligence meetings; incorporated the manager SRI implementation in our internal China scorecard; and incorporated the SRI conclusions into the Investment recommendation mem. Some of the managers with no ESG policy in place, decided to look into and work on drafting ESG policies for their own organizations. 


SAM 09. Examples of ESG issues in selection, appointment and monitoring processes

09.1. 報告年度において、運用会社の選定、指名やモニタリングプロセスの過程で、ESG問題がどのように対処されているかを示す事例を挙げてください。

トピックまたは問題
          China Equity Search
        
実行者
資産クラス
対象範囲およびプロセス

Scope: Increase our exposure to China equity markets / Align the investment process with our ESG considerations

Process: 

  • Requested all Finalist Managers to fill out Mercy’s SRI Due Diligence Checklist and shared with them a UNPRI write-up on ESG within Asia (asked to comment on this topic)
  • Discussed their SRI responses and went over specific investment cases during our final due diligence meetings
  • Discussed thier ESG policy or plans to implement an ESG policy in the future
  • Incorporated the manager SRI implementation in our China Scorecard, which influenced our manager selection decision
  • Incorporated the SRI conclusions into the Investment recommendation memo
結果

Robust due diligence / investment decision ensuring ESG practices are implemented in firmwide ESG policies and incorporated within the investment process. 

Promote RI practices: Stressed importance of RI practices and engaged in conversations on managers' plans to initiate or improve consideration of ESG in the investment process or in the firm management in the future. 

09.2. 補足情報 [任意]


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