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eQ Asset Management Ltd

PRI reporting framework 2020

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You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
95 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
5 %
Total actively managed listed equities 200%

01.2. Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.

Including ESG matters in equity and bond investments is very down to earth and part of the portfolio manager’s day-to-day work when selecting investments and managing funds.  Our goal is to seek best returns in all our stratgies and the ESG process plays a significant role in achieving the goal. Our investment processes are typically designed to identify long term sustainable growth and profitability and therefore ESG is imbedded in the process in selection and monitoring stages.

One of the most important areas is the availability of the sustainability reporting, where we have for years actively encouraged companies to better transparency. In practice, we go through all our investments with the ESG metrics that we have selected. Since 2018, our own sustainability assessment work has been supported by ISS-Ethix, which monitors the contents of our funds quarterly to detect any violations of the UN's Global Compact principles. This information is used actively in the interaction with companies, and in all serious violations, we will launch a separate follow-up process of our own in order to find out if the investment is still in line with our responsibility principles for long-term ownership. The number of serious violations has remained very low in 2019, and is limited to a few companies world-wide.

We have one thematic fund which is positioned with social and environmental themes (eQ Blue Planet). Also, we manage a tailor-made low carbon strategy. 

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

eQ Blue Planet fund and also, we manage a tailor-made low carbon strategy. ESG strategy regarding eQ Blue Planet fund consists of a. screening of investments (inc. ISS Ethix Norms-based-screening), b. thematic fund which is positioned with social and environmental themes and c. integration of ESG matters (the systematic and explicit inclusion of material ESG factors into investment analysis and investment decisions). The fund focuses on opportunities arising from transition to sustainable energy system. Social sustainability and leadership in stakeholder capitalism are also in the core of the investment process. 


LEI 02. Type of ESG information used in investment decision (Private)


LEI 03. Information from engagement and/or voting used in investment decision-making (Private)


(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

Since 2018, our own sustainability assessment work has been supported by ISS-Ethix, which monitors the contents of our funds quarterly to detect any violations of the UN's Global Compact principles. This information is used actively in the interaction with companies, and in all serious violations, we will launch a separate follow-up process of our own in order to find out if the investment is still in line with our responsibility principles for long-term ownership. The number of serious violations has remained very low in 2019, and is limited to a few companies world-wide. ISS-Ethix provides the data which is used in pre-investment, monitoring and engagement.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

We notify of the engagement actions taken, the criteria as such, being provided and carried out by ISS-Ethix, does not change and we do not have an impact on it.


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


LEI 06. Processes to ensure fund criteria are not breached (Private)


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

We have transformed our old energy fund to eQ Blue Planet identifying opportunties from global energy system transitioning to lower carbon footprint. This process has our integrated ESG approach added with a specific screening approach to single out companies significantly impacting the aforementioned transition globally. We have been able to successfully build a technology investing platform that really starts from hard CO2 challenges. This fund also uses actively social sustainability factors, and a 360 degree sustainability analysis, which is unique and leading in the industry. Experiences of this fund, and its processes, are shared with other PM's to help them develop tools suitable for their own funds.


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]


LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information. [Optional]

We focus on sharing and communicating ESG information internally and keeping transparent records available to our investment staff and compliance and risk management staff for assurance purposes.


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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