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BT Pension Scheme

PRI reporting framework 2020

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

Appointment

SAM 04. Appointment processes (listed equity/fixed income)

04.1. Indicate if in the majority of cases and where the structure of the product allows, your organisation does any of the following as part of the manager appointment and/or commitment process

04.2. Provide an example per asset class of your benchmarks, objectives, incentives/controls and reporting requirements that would typically be included in your managers’ appointment.

Asset class

Benchmark

ESG Objectives

          Managers are required to integrate ESG into their investment process.
        
          Where we assess a manager to have sufficient capability they will be appointed to undertake engagement and voting activities on behalf of their portfolio holdings.  Where this is not the case we appoint Hermes EOS to undertake these activities.
        
          Where we assess a manager to have sufficient capability they will be appointed to undertake engagement and voting activities on behalf of their portfolio holdings.  Where this is not the case we appoint Hermes EOS to undertake these activities.
        

Incentives and controls

Reporting requirements

Benchmark

          Custom fixed income benchmark.
        

ESG Objectives

          Managers are required to integrate ESG into their investment process.
        
          Where we assess a manager to have sufficient capability they will be appointed to undertake engagement activities on behalf of their portfolio holdings. Where this is not the case we appoint Hermes EOS to undertake these activities.
        
          In rare instances fixed income investors are asked to vote, where we assess a manager to have sufficient capability they will be appointed to undertake the voting activities on behalf of their portfolio holdings.  Where this is not the case we appoint Hermes EOS to undertake these activities.
        

Incentives and controls

Reporting requirements

Benchmark

          Customised credit benchmark.
        

ESG Objectives

          Managers are required to integrate ESG into their investment process.
        
          Where we assess a manager to have sufficient capability they will be appointed to undertake engagement activities on behalf of their portfolio holdings. Where this is not the case we appoint Hermes EOS to undertake these activities.
        
          In rare instances fixed income investors are asked to vote, where we assess a manager to have sufficient capability they will be appointed to undertake the voting activities on behalf of their portfolio holdings.  Where this is not the case we appoint Hermes EOS to undertake these activities.
        

Incentives and controls

Reporting requirements

Benchmark

          Customised credit benchmark.
        

ESG Objectives

          Managers are required to integrate ESG into their investment process.
        
          Where we assess a manager to have sufficient capability they will be appointed to undertake engagement activities on behalf of their portfolio holdings. Where this is not the case we appoint Hermes EOS to undertake these activities.
        
          Where we assess a manager to have sufficient capability they will be appointed to undertake engagement and voting activities on behalf of their portfolio holdings.  Where this is not the case we appoint Hermes EOS to undertake these activities.
        

Incentives and controls

Reporting requirements

Benchmark

          Customised credit benchmark.
        

ESG Objectives

          Managers are required to integrate ESG into their investment process.
        
          Where we assess a manager to have sufficient capability they will be appointed to undertake engagement activities on behalf of their portfolio holdings. Where this is not the case we appoint Hermes EOS to undertake these activities.
        
          In rare instances fixed income investors are asked to vote, where we assess a manager to have sufficient capability they will be appointed to undertake the voting activities on behalf of their portfolio holdings.  Where this is not the case we appoint Hermes EOS to undertake these activities.
        

Incentives and controls

Reporting requirements

Benchmark

          Custom public market equivalent (PME) benchmark.
        

ESG Objectives

          The investment strategy is thematically designed to take into account the risks and opportunities arising from long-term investment trends, e.g. changing demographics.
        
          Managers are required to integrate ESG into their investment process.
        
          Managers are expected to asses ESG policies and engage with the underlying portfolio companies and funds, if the investment is through another PE manager
        
          The manager must seek to meet relevant best practice ESG standards and reporting, including the standards set by the PRI, UK Corporate Governance Code, Hermes Responsible Ownership Policy and the BTPS Responsible Investment Policy.
        

Incentives and controls

Reporting requirements

Benchmark

          IPD UK Large Life & Pension Funds benchmark
        

ESG Objectives

          The Scheme's property portfolio is manager in accordance with Hermes Responsible Investment Policy.
        
          Managers are required to integrate ESG into their investment process.
        
          The Hermes property team promoted responsible investment within its portfolio and within the wider industry.
        
          Hermes applies its impact framework, developed internally with input from UNEP FI and PIII, to investments which focuses, amongst other things, on meaningful placemaking, climate and resource efficiency and health and well-being.
        
          The Scheme's property portfolio is manager in accordance with Hermes Responsible Investment Policy.
        

Incentives and controls

Reporting requirements

Benchmark

          UK inflation+ benchmark.
        

ESG Objectives

          Managers are required to integrate ESG into their investment process.
        
          The manager must seek to meet relevant best practice ESG standards and reporting, including the standards set by the PRI, UK Corporate Governance Code, Hermes
        

Incentives and controls

Reporting requirements

04.3. Indicate which of these actions your organisation might take if any of the requirements are not met

04.4. Provide additional information relevant to your organisation`s appointment processes of external managers. [OPTIONAL]

          
        

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