You selected an `Other` option in table SAM 02.1 above, please specify
- Engagement commitments and activities
- Gender Diversity at the firm level
You selected an `Other` option in table SAM 02.4 above, please specify
ESG engagement commitments
Describe how the ESG information reviewed and discussed affects the selection decision making process.[OPTIONAL]
Whether we are hiring managers for screened or un-screened mandates, we look for managers who consider environmental, social and corporate governance (ESG) factors in their approach to stock selection, risk management and/or asset allocation. This approach is at the foundation of our portfolio manager selection and monitoring process and we communicate it clearly to manager candidates at the outset of the selection process.
After initial communications and data collection phase, we review each candidate’s ESG philosophy, strategy, people, and process information that has been collected through DDQs, external third-party assurances, public information and multiple in-person meetings. Based on our quantitative method and qualitative overview, we score the following ESG metrics, from 1 -5:
- ESG Integration: Quantitative Process and Transparency
- Engagement: Selecting engagement targets, reporting, and openness to joint engagements
- Thought Leadership: quality
- Impact: stock selection and impact reporting
These scores are then weighted and added up to reveal a manager selection score - ESG. That score along with a qualitative description of each manager candidate is then incorporated into the overall manager selection score. At NEI, we have a strategic initiative when replacing managers to elevate the ESG profile of the mandate, thereby requiring the new manager to have a higher ESG score than the manager that is being replaced.