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

Eaton Vance Corp.

PRI reporting framework 2020

Export Public Responses
Pdf-img

You are in Direct - Listed Equity Incorporation » Outputs and outcomes

Outputs and outcomes

LEI 12. How ESG incorporation has influenced portfolio composition

12.1. Indicate how your ESG incorporation strategies have influenced the composition of your portfolio(s) or investment universe.

Describe any reduction in your starting investment universe or other effects.

At Parametric, holdings for any given account would depend on the client's choice of responsible investing approach and initial investment universe. Further, these holdings would be affected by the degree of sampling used to achieve an optimized portfolio. Prior to inception we are happy to run account specific analysis, including final holdings, for any prospective clients.

At Atlanta Capital, holdings for any given account would depend on the client's choice of responsible investing approach and initial investment universe.

Specify the percentage reduction (+/- 5%)

%

Select which of these effects followed your ESG integration.

12.2. Additional information.[Optional]

Calvert assesses ESG factors in all their Responsible Index funds based on a broad universe of stocks in the relevant asset classes. The universes are run through CRS, a proprietary research system where we analyze, score and rank each company on material ESG risk and opportunity across 150 custom peer groups. Once the analysts have reviewed the results, recommendations are submitted to Calvert's Index Committee for approval. The indices are then constructed in a manner that attempts to sector neutralize the effects of the ESG screening process.

Parametric strives to be able to facilitate any ESG related theme that is important to its clients into a portfolio, assuming that the appropriate data is available. Parametric's goal is not to provide an opinion about which themes are most important or to forecast returns based on these themes, but rather to provide a broad range of high-quality data that can be easily incorporated into any given investment mandate. The value-add is helping clients identify those responsible investing metrics which are most meaningful to their objectives and building a portfolio which performs in-line with their expectations.

Atlanta Capital strives to be able to facilitate ESG related issues important to its clients into a portfolio, subject to data availability and the degree it alters the original portfolio strategy.   Atlanta Capital has been incorporating individual client requests for nearly 40 years and the Calvert Principles for 20 years.


LEI 13. Examples of ESG issues that affected your investment view / performance

13.1. Provide examples of ESG factors that affected your investment view and/or performance during the reporting year.

ESG factor and explanation

Tobacco

ESG incorporation strategy applied Screening

Impact on investment decision or performance

Calvert avoids companies that manufacture tobacco products as such products can cause addiction and may lead to severe adverse health consequences, both in the U.S. and abroad. This sector is excluded from the Calvert Principles which led to underperformance for this time period.

ESG factor and explanation

Fossil fuel

ESG incorporation strategy applied Screening

Impact on investment decision or performance

Calvert views fossil fuel companies as having high business and operational risk. Given that fossil fuel companies demonstrate poor environmental performance or compliance records, contribute significantly to local or global environmental problems such as climate change, there are few companies from this industry in which Calvert invests, leading to underweighting of this sector in their portfolios. As a result, there will be periods of out- or underperformance due to the lower exposure to this sector.

ESG factor and explanation

Board diversity

ESG incorporation strategy applied Thematic

Impact on investment decision or performance

Calvert: Women and minorities are still significantly underrepresented at the board level and at the C-suite and executive levels for corporations. Gender diversity fosters innovation and growth while conveying distinct financial benefits to the corporate bottom line. Companies with greater gender diversity in their top ranks have been shown to have competitive advantages and stronger financial performance. As a result, Calvert assesses diversity performance as part of their ESG investment analysis.

ESG factor and explanation

Water efficiency/water scarcity

ESG incorporation strategy applied Index incorporating ESG factors

Impact on investment decision or performance

At Calvert, the Calvert Global Water Research Index identifies companies that are leading their water-intensive industry through their best practices in water efficiency and water re-use. The inclusion of this leadership category offers diversification in what can be a more volatile sector, thus lowering its risk profile.

ESG factor and explanation

Energy efficiency

ESG incorporation strategy applied Index incorporating ESG factors

Impact on investment decision or performance

At Calvert, a portion of the Global Energy Solutions Index invests in companies that derive more than 30% of revenues from products or services that facilitate more efficient energy use/consumption, which they view is a solution to longer term energy needs. This has been a high growth sector as the long term secular trend toward energy savings is increasingly embraced by companies across sectors. The energy efficiency sector has been a positive contributor to performance.

13.2. Additional information.[Optional]

The answers above reflect the work of Calvert. However, it should be noted that through the EVC investment affiliates, Eaton Vance includes consideration of environmental, social and governance (ESG) factors in our evaluation of investment opportunities and in the construction of the investment portfolios we manage. In our decision-making process, the weightings assigned to ESG criteria vary based on the individual investment team's determinations of financial materiality and the direction provided to us by our clients. At Eaton Vance, we are active owners, addressing ESG issues through direct dialogue with companies, proxy voting and other engagement activities.


Top