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Pendal

PRI reporting framework 2020

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You are in Direct - Listed Equity Incorporation » Outputs and outcomes

成果および結果

LEI 12. How ESG incorporation has influenced portfolio composition

12.1. 組織のESG組み入れ戦略がポートフォリオや投資ユニバースの構成にどういう影響を与えているかを記載してください。

ESG統合後の効果を記載してください。

12.2. 補足情報 [任意]

We recognise that ESG factors can have a significant influence on the value placed on a company and its ability to drive shareholder returns on a long term basis.

ESG is relevant to a portfolio or investment decision if one or more of the following apply:

  • ESG is a predictor of future returns.
  • ESG analysis indicates longer term risks that investment analysis may not factor in.
  • ESG analysis indicates that there are moral or ethical issues which should be considered.

It is also important to consider ESG issues in light of the chosen method of implementation and investment time horizon. For example, ESG issues will have much more importance for directly or indirectly held securities where the holding period may be three years or more, than for a short term momentum based trade using futures.

Companies that undertake activities that are socially undesirable or environmentally damaging expose themselves to the longer term risk of regulatory change that adversely impacts their business. There is also the risk of fines or paying restitution if the conduct is illegal or negligent. This risk is particularly relevant in some sectors, such as energy.

We are unlikely to take a formal, permanent “divestment” approach, but rather consider whether the longer term ESG risks are sufficiently captured in the market price, and sufficiently diversified away within an index, or not. Unless the issue is such that it would result in the investment being worthless, then longer term risks are a matter of valuation, and whether the risks are adequately compensated for in the expected investment return. The expected holding period of the investment is also a very relevant consideration in this regard, as these types of risks are more important for assets with longer holding periods.


LEI 13. Examples of ESG issues that affected your investment view / performance

13.1. 組織の投資見解や報告年度のパフォーマンスに影響を与えたESG問題の例を挙げてください。

ESG要因および説明

Poor conduct controls: Evidence of a company breaching its obligations under Australian regulations, with internal failures to adequately bring the issue to Exec/Board attention, reflecting a poor conduct culture.

適用したESG組み入れ戦略 Screening|Integration

投資決定やパフォーマンスへの影響

Reduced holdings in conventional funds; divested in Sustainable and Ethical funds.

ESG要因および説明

Physical climate risk - prolonged drought: An agricultural company with high exposure to areas impacted by prolonged drought, with limited options for geographic diversification. 

適用したESG組み入れ戦略 Integration

投資決定やパフォーマンスへの影響

Reduced holdings

ESG要因および説明

Transition risk - Identified an energy company facing a capital impost as they shift their generation mix away from coal and long term pricing pressure as renewables continue to enter the grid.

適用したESG組み入れ戦略 Integration

投資決定やパフォーマンスへの影響

Did not invest

ESG要因および説明

Human capital management and innovation - Identified a company with leading human capital management controls and clear integration of culture into strategy, reflected in strong performance on employee engagement, high staff retention, product development and innovation.Also, training and development programs and initiatives to build innovation capability.

 

適用したESG組み入れ戦略 Integration

投資決定やパフォーマンスへの影響

Increased position

ESG要因および説明

Sustainability performance: Identified a property company with leading energy and water use across its portfolio, with a clear plan to increase solar capacity. Further, the company had comprehensive disclosures of asset-level physical resiliency testing.

 

適用したESG組み入れ戦略 Screening|Integration

投資決定やパフォーマンスへの影響

Increased position in our Sustainable Series funds as part of our positive screen towards leading ESG performers.

13.2. 補足情報 [任意]


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