This report shows public data only. Is this your organisation? If so, login here to view your full report.

Pensioenfonds PNO Media

PRI reporting framework 2020

You are in Strategy and Governance » ESG issues in asset allocation

ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

13.1. Indicate whether the organisation carries out scenario analysis and/or modelling, and if it does, provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

Describe Climate change and energy transition scenarios and stress tests have been studied in the beginning of 2020 to assess what the impact of climate related risks and opportunities on the investment portfolio and the asset classes/ investment strategies within the portfolio. A mild and severe scenario of energy transition have been looked at in detail. Within these scenarios different regulatory changes (especially different levels of carbon tax) and possible technological changes haven been taken into account, which are seen both as risks as opportunities. Carbon intense companies (aerospace, energy, utility, cars, construction, chemical industry sectors) are going to suffer in both scenarios and especially in the severe scenario. Within the investment portfolio the pension board is advised to protect the equities portfolio (put options, in case of a severe scenario), change the regional allocation within the equities portfolio (more weight to US and EM, because Europe, Japan and Australia will be hit more severely due to the energy transition), change in the industry sector allocation (we expect external managers to do that themselves, in case they don't, PNO can set limits), higher interest rate hedge in case of a severe scenario.

13.2. Indicate if your organisation considers ESG issues in strategic asset allocation and/or allocation of assets between sectors or geographic markets.

We do the following

13.3. Additional information. [OPTIONAL]


SG 13 CC.

13.4 CC. Describe how your organisation is using scenario analysis to manage climate-related risks and opportunities, including how the analysis has been interpreted, its results, and any future plans.

Describe

See also SG01.6 CC and SG13.1. Climate change and energy transition scenarios and stress tests have been studied in the beginning of 2020 to assess what the impact of climate related risks and opportunities on the investment portfolio and the asset classes/ investment strategies within the portfolio. A mild and severe scenario of energy transition have been looked at in detail. Within these scenarios different regulatory changes (especially different levels of carbon tax) and possible technological changes haven been taken into account, which are seen both as risks as opportunities. Carbon intense companies (aerospace, energy, utility, cars, construction, chemical industry sectors) are going to suffer in both scenarios and especially in the severe scenario. Within the investment portfolio the pension board is advised to protect the equities portfolio (put options, in case of a severe scenario), change the regional allocation within the equities portfolio (more weight to US and EM, because Europe, Japan and Australia will be hit more severely due to the energy transition), change in the industry sector allocation (we expect external managers to do that themselves, in case they don't, PNO can set limits), higher interest rate hedge in case of a severe scenario.

13.5 CC. Indicate who uses this analysis.

13.6 CC. Indicate whether your organisation has evaluated the potential impact of climate-related risks, beyond the investment time horizon, on its investment strategy.

Describe

The horizon which is used for the described analysis in 13.4 CC is 5-10 years.

13.7 CC. Indicate whether a range of climate scenarios is used.

13.8 CC. Indicate the climate scenarios your organisation uses.

Provider
Scenario used
IEA
IEA
IEA
IEA
IEA
IRENA
Greenpeace
Institute for Sustainable Development
Bloomberg
IPCC
IPCC
IPCC
IPCC
Other

Other (1) please specify:

          LINKS Mira ABM mild transition
        
Other

Other (2) please specify:

          LINKS Mira ABM severe transition
        
Other

SG 14. Long term investment risks and opportunity

14.1. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following are considered.

14.2. Indicate which of the following activities you have undertaken to respond to climate change risk and opportunity

other description

          Our provider EOS at Federated Hermes engages companies specifically with a view to enhance disclosure, integrate actions and policies around climate related risks and investments.
        

14.3. Indicate which of the following tools the organisation uses to manage climate-related risks and opportunities.

other description

          Our engagement service provider, EOS at Federated Hermes, engages companies specifically with a view to enhance disclosure around climate-related risks.
        

14.5. Additional information [Optional]


SG 14 CC.


SG 15. Allocation of assets to environmental and social themed areas

15.1. Indicate if your organisation allocates assets to, or manages, funds based on specific environmental and social themed areas.

15.2. Indicate the percentage of your total AUM invested in environmental and social themed areas.

1 %

15.3. Specify which thematic area(s) you invest in, indicate the percentage of your AUM in the particular asset class and provide a brief description.

Area

Asset class invested

1 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

The funds within PNO Media's infrastructure mandate invest their portfolio partly in renewable energy projects.

Asset class invested

0.01 Percentage of AUM (+/-5%) per asset class invested in the area

Brief description and measures of investment

This part of PNO Media's portfolio is invested in an Actiam Microfinance Fund, which invests in Micro Finance Institutions in developing countries.

15.4. Please attach any supporting information you wish to include. [OPTIONAL]



Top