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

CIBC Asset Management Inc.

PRI reporting framework 2020

Export Public Responses
Pdf-img

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
SSA
0 Screening alone
0 Thematic alone
90 Integration alone
5 Screening + integration strategies
5 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
90 Integration alone
5 Screening + integration strategies
5 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
90 Integration alone
5 Screening + integration strategies
5 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

Integration

We believe the incorporation of ESG by the analyst leads to better investment decisions. In addition, the ESG risks (such as climate change impact on the business or gender diversity at the Board level or management) helps the qualitative assessment of the company. If the ESG risk is high, the bond price should reflect this risk.

This approach applies to companies on all of our Approved Lists (money market / investment grade bonds / high yield / SRI) which constitute our active holdings.

Screening & Integration

Reflects specific SRI mandates. Our approach is described in FI 04

Thematic and Integration

Reflects our interest in Green, Social and Sustainable bonds. 

 

 

01.3. Additional information [Optional].

CIBC AM has implemented a rigorous procedure for integrating ESG factors into our fundamental analysis and investment process. Our proprietary approach is based on an analyst-led, quantitative strategy in line with the Responsible Business Conduct guidelines from OECD.

Each equity and fixed income analyst crafted a custom questionnaire to measure E, S and G performance for the companies within their coverage. Development of the ESG questionnaires was guided by the following 18 factors identified as most relevant for our investment universe:

-Environmental factors: climate change, water and energy use, waste management, regulatory threshold and compliance, assessment and disclosure

-Social license factors: health & safety, privacy & data security, labour relations & employment quality, human rights, community relations & social media, product responsibility

-Governance factors: board, ownership, business ethics, legal & regulatory compliance, executive compensation, disclosure, gender diversity

Initial data collection included publicly disclosed information, such as annual reports, ESG reports, 10Ks, and Annual Information Forms. Direct communication with companies and supplemental information from third party providers Sustainalytics and the Canadian Coalition of Good Governance were further incorporated to complete the datasets. Analysts then calculated company scores for each ESG factor, applying sector weightings developed using materiality matrices, and ranked companies from "best-in-class" to "below average" based on overall ESG score.

Better investment decisions result as credit analysts incorporate their ESG research into their own assessments of bond values. If the ESG risks are high then the spread will need to be sufficient to compensate for these risks.  This approach applies to companies on all of our Approved Lists (money market / investment grade bonds / high yield / SRI) which constitute our active holdings.

ESG scores and ratings are presented in investment committee meetings for discussion and stored centrally for inclusion in investment research reports.


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

specify description

          Proprietary questionnaires, concluding scores and ratings will be updated annually.
        

03.2. Describe how your ESG information or analysis is shared among your investment team.

03.3. Additional information. [Optional]

Please refer to FI 01.3 for our proprietary approach to ESG integration.


Top