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Christian Brothers Investment Services, Inc.

PRI reporting framework 2020

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

Outputs and outcomes

SAM 08. Percentage of externally managed assets managed by PRI signatories

08.1. Describe how you ensure that best RI practice is applied to managing your assets

Measures

          We work with our managers to improve their ESG integration tools and understanding, expose them to industry best practice and new topics, and we discuss and assess internally their performance on ESG understanding and integration, while we retain engagement and voting in-house. We additionally encourage managers to become PRI signatories, and to join us in our ESG efforts and engagements. We also invite them to ESG events and issue briefings, and query them on ESG materials they publish, and activities they become involved in. We ask managers what they can do to assist us in our ongoing ESG priorities and programs, and ask specific questions about carbon footprinting and climate analysis capabilities for us.
        
          Include more ESG-focused managers in our slate of managers to review/consider for new strategies or funds.
        

Measures

          CBIS now includes ESG-specific criteria, such as the Mercer ESG rating, when narrowing our list of candidates for new manager searches.
        

08.2. Additional information. [Optional]


SAM 09. Examples of ESG issues in selection, appointment and monitoring processes

09.1. Provide examples of how ESG issues have been addressed in the manager selection, appointment and/or monitoring process for your organisation during the reporting year.

Topic or issue
          Deforestation
        
Conducted by
Asset class
Scope and process

When certain countries were involved in policy and enforcement changes in 2019 that resulted in massive wildfires and deforestation, CBIS approached the managers of our sovereign debt in countries implicated in the resulting large-scale deforestation, and asked them to raise concerns on behalf of our sovereign debt holdings. We noted participation in engagement in subsequent meetings with the relevant manager(s).

Outcomes

One of our managers joined us in signing on to a public investor statement to the Brazilian and Bolivian governments on deforestation concerns. We additionally discussed the ESG sophistication of managers asked about this issue, to note in their ESG/RI profile.

Topic or issue
          Climate change due diligence
        
Conducted by
Asset class
Scope and process

We asked several of our sub-advisers about their abilities to conduct carbon footprinting, physical impact assessments, and climate scenario analysis across the securities they invest in on our behalf. We reviewed those findings with managers where applicable, including their understanding and support for the TCFD.

We additionally emailed a climate change-specific survey to our managers to better understand their climate actions, and their abilities to assist us in our climate due diligence and engagements.

Outcomes

One manager did complete the assessments for us, shared its understanding of the findings and the impact on our funds, and it discussed its support for and understanding of the TCFD and increasing investor expectations for climate change due diligence.

The climate surveys are being brought up in ESG-focused meetings with managers in 2020.

Topic or issue
          ESG Policy and Integration Progress
        
Conducted by
Asset class
Scope and process

In 2019, we laid the groundwork to ask our sub-advisers much more information about how they integrate ESG factors into all aspects of their process--from idea generation to portfolio construction. In 1Q 2020, we collected this information, to feed into our discussions with managers in 2Q 2020. These requests are more detailed than past surveys of our sub-advisers. 

Outcomes

We will be internally rating our managers in 2020 on ESG integration based on this work in 2019.

While a decision to hire a manager is not entirely dependent on their approach to ESG, it is one of the factors that goes into our decision, beyond the factor of screening ability, which is essential for manager selection. Our sub-advisers are now routinely receiving queries on ESG issues from us, so the expectation for manager meetings is that ESG topics will arise.

09.2. Additional information.


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