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Keva

PRI reporting framework 2020

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You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities

アクティブ運用している上場株式におけるESGの組み入れ

実施プロセス

LEI 01. Percentage of each incorporation strategy

01.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
100 %
アクティブ運用している上場株式の合計 200%

01.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

The following disclosure is important and is a backgrounder for both LEI and LEA modules. 

In 2019, we did a major overhaul in our European direct equity strategy. The background was aligning the strategy more tightly to the purpose of the fund in a somewhat changed situation with regards of the fund long-term future cashflow needs (demography-based underlying issues).

The strategy aims at more stable and controlled cashflow generation as the cashflow needs on the pension system will gradually increase in the years to come. A factor in the background was also the renewing our investment beliefs and our principles of our responsible investment beliefs in 2017 and the consequent board-driven RI projects (document links in the strategy-section). From the perspective of RI, the strategic shift led to marked changes in our Europe portfolio (some 60% of the internally managed equity assets). The size of our internally managed domestic strategy is 40% of the (internally managed equity) total.

On the back of the European strategy, the number of shares in our European active strategy came down from 150 to 57. A driver was on one hand a more purpose-driven style tilting (description on the cashflow needs, principles and demographic constraints above) and on the other hand a better ability to engage and vote on the companies in an informed way with our limited resource pool. During 2019, we procured a proxy-voting IT system and in the beginning of 2020, we have placed our first votes. 

As a result of strategy development, the weighed average issuer carbon intensity in our Europe portfolio came down markedly and is now less than half of the underlying index (MSCI Europe IMI) and based on MSCI ESG data. Also in our domestic business, our weighed average issuer carbon intensity is some 15% below that of the benchmark (OMX Helsinki 25). 

In 2019, the personnel of the direct equity team was engaged in 1) Articulating the strategy 2) Equity selection for the new strategy and 3) Shifting the portfolio to reflect the new thinking. Whilst the strategy is a major improvement from ESG perspective (ability to engage increasing through concentration, carbon footprint markedly down, proxy voting processes now up and running), resources were focused on building the future rather than day-to-day business. This is reflected in LEA and LEI answers. We would like to emphasize however that the ESG improvement both from strategic and from process perspective is fundamental. We hope that this is also reflrected in PRI assessment. For us, this would be a signal that PRI values long-term strategic development and understands the consequent need for resource allocation. 

ESG factors are integrated in our equity portfolio management and investment process. We integrated ESG factors in our fundamental economy, industry and company analysis (themes, megatrends, resources, legislation, regulation, risks etc). According to our investment philosophy, stocks are selected based on several quality criterion which includes ESG factors.  Furthermore, we use screening and research by external service providers to complement our own resources.

01.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]

In the active equity portfolios, the ESG factors are integrated in the stock selection process. Twice a year the portfolios are screened for new reported ESG violations or controversies. Controversial weapons are excluded from our investments.


LEI 02. Type of ESG information used in investment decision (Private)


LEI 03. Information from engagement and/or voting used in investment decision-making (Private)


A) 実施:スクリーニング

LEI 04. Types of screening applied

04.1. 組織内でアクティブ運用している上場株式に適用するスクリーニングの種類を記載し、説明してください。

スクリーニングの種類

スクリーニング実行者

説明

The portfolios are screened bi-yearly using an external service provider

スクリーニング実行者

説明

The portfolios are screened twice a year by the external service provider based on their own classification and recommendations system.

04.2. スクリーニング基準が変更された場合に顧客や受益者に通知する方法について説明してください。

According to our principles of responsible investments we monitor and analyse complience with international conventions among investee. The external service provider has establised the criterion for the classification of violations and the recommendations are based on these criterion. The review of criterion as well as research on companies, sectors and countries is a continous process. The screenings of the portfolios are run twice a year.


LEI 05. Processes to ensure screening is based on robust analysis

05.1. スクリーニングが徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを選択してください。

05.2. ESGスクリーニング戦略の一環で包括的なESG調査の対象となるアクティブ上場株式ポートフォリオの割合を示してください。

05.3. 第三者のESG評価がスクリーニング目的で更新される頻度を示してください。

05.5. 補足情報 [任意]

The ESG ratings of an external service provider are available all the time for the portfolio managers through Factset. In addition, the ESG team provides an aggregated report of the portfolios 4 times a year. Before taking a company in the portfolio, the portfolio managers conduct a standard-form research, focusing on four different strategic fields, in addition to valuation.This question-setting leads several ESG-questions as well. Specifically, a long strategic timeframes ensure that the "residual" equity claimant of cashflows is more likely interested in externalities as well.


LEI 06. Processes to ensure fund criteria are not breached (Private)


B) 実施:テーマ

LEI 07. Types of sustainability thematic funds/mandates

07.1. 組織が運用している、サステナビリティをテーマとするファンドやマンデートの種類を記載してください。

07.2. 組織でのサステナビリティをテーマとしたファンドのプロセスについて説明してください。 [任意]

As desctibed above (LEI 01), when we are targeting stable cashflows (starting from the purpose of the fund), we end up in a "quality" portfolio style-wise, This leads to e.g. a carbon footprint, which is less than half of the benchmark. Also other ESG metrics (as measured by our service provider) are higher than that of the index. From the metrics, one could make the conclusion that the fund is environmentally themed.  


C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. E・S・Gの各要因が投資分析の一環として体系的に調査されている、アクティブ運用の上場株式ポートフォリオの割合を記載してください。

ESG問題

影響を受ける割合
E(環境)

E(環境)

S(社会)

S(社会)

コーポレートガバナンス

コーポレートガバナンス

08.2. 補足情報 [任意]

Analysis of ESG issues are integrated in all internally, actively managed listed equity investments. Look at the answers above on 1) IT infrastrucure and 2) proprietary reporting framework when aiming to include a company to the portfolio and 3) our framework for company meetings / engagements. 


LEI 09. Processes to ensure integration is based on robust analysis

09.1. ESG統合が徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを記載してください。

09.2. 組織の統合戦略の一環で包括的ESG調査の対象になるアクティブ運用上場株式の割合を記載してください。

09.3. ESG統合戦略に使われる第三者のESG評価が更新される頻度を示してください。

09.5. ポートフォリオ・マネージャーがどのようにしてESG情報を保有し、使っているのか説明してください。

09.6. 補足情報 [任意]

ESG information both on a company level and on portfolio leven is availablle to portfolio managers. All company reports and engagement reports are centrally available (look at the description above),


LEI 10. Aspects of analysis ESG information is integrated into

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。

10.1. 投資分析のどの側面にESG情報を統合しているかを記載してください。

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

10.6. 補足情報 [任意]

In our revised Europe strategy, we are using a proprietary framework to assess strategy, industry positioning, management quality and capital allocation. Our framework is a derivative of academic strategy literature and similar to all companies. 


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