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Sompo Asset Management Co., Ltd.

PRI reporting framework 2020

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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.

Screening based on ESG

Specify the percentage reduction (+/- 5%)

50 %

Select which of these effects followed your ESG integration.

12.2. Additional information.[Optional]


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

This is a case of a steelmaker in Japan. We asked the company how it foresees its potential hike in costs for the global warming gas emission reduction as well as its potential increase in demand for its technical superiority. Also, we confirmed it its potential burden in case if its market introduces carbon pricing.

 

 

ESG incorporation strategy applied Integration

Impact on investment decision or performance

We did not change our judgement for the company. The reason is that the potential impact from the introduction of the carbon pricing was within our assumption and that there was no discrepancy between the company and SNAM on the opportunity and risks. Thus, the information did not affect on the way we see the company.

ESG factor and explanation

In some of the funds that we manage, we screen out companies which are the precursors of work-style reform as well as obtain strong earnings results.

ESG incorporation strategy applied Screening

Impact on investment decision or performance

We invest in 39 companies.

ESG factor and explanation

In some of the ESG-tilted funds that we manage, based upon our proprietary ESG questionnaires, we screen out companies in light of “environmental management” “environmental communication” and “environmental performance”.

ESG incorporation strategy applied Screening

Impact on investment decision or performance

We invest in 86 corporates.

ESG factor and explanation

In some of the ESG-tilted funds that we manage, based upon our proprietary ESG questionnaires, we score companies and invest in the best-class.

ESG incorporation strategy applied Screening

Impact on investment decision or performance

We invest in 286 corporates.

ESG factor and explanation

This is a case for a construction material manufacturing company in Japan. It turned out that the company was engaged in a misbehavior for its products although the products were used as essential parts for buildings. Thus, we integrated its potential examination fees and changing cost that are adherent to its mismanagement into our earnings forecast.

ESG incorporation strategy applied Integration

Impact on investment decision or performance

We regarded that it is not appropriate, as a responsible investor, to continue to invest in the company. We sold off the name in the entire funds that we manage.

13.2. Additional information.[Optional]


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