The process is three fold:
- work with our asset consultant. Frontier provides ESG ratings for each of our managers and those we are looking to appoint. The majority of our managers are 3 stars or above (out of 5) for ESG.
- Cbus RI team issue ESG questions
- review information we have obtained during our selection process.
Following a review of information provided by the shortlisted managers, the team will determine the credibility of the manager in respect of ESG. The RI team will provide a comment as to supporting or not supporting the manager appointment. Each Manager in each asset class is provided with the same questions (leveraging the PRI DDQs where available).
If the fund manager is not strong on ESG, there will be a discussion with the fund manager if they are willing to work with Cbus to develop this capability. If they are, Cbus may still appoint the manager with additional ESG requirements specified in the mandate.
In relation to property and infrastructure Cbus encourages existing and prospective property fund managers to set ESG targets and a GRESB signatory. For example, net zero emissions by 2030.