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Community Capital Management, INC.

PRI reporting framework 2020

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

ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
100 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.

Similar to our approach in fixed income, we evaluate equity securities from an impact and financial perspective.  CCM supplements its in-house research with third-party data to determine where potential holdings fall in the following four categories:

Strong Positive Impact: companies that we believe are significant contributors to society such as those that generate more than 50 percent of their revenue from a product or service and that align with one ore more of our 18 impact themes.
Moderate Positive Impact: companies which have characteristics that align with one or more of our 18 impact themes and that we believe are a net benefit to society.
Neutral Impact: companies that do not fall within the two categories above but where there exists the potential to be included in the two categories in the future.
Negative Impact: companies with excessive ESG-related risk such as fossil fuel exploration and production or any activity related to coal, tobacco, chemical manufacturing, weapons, and prison management, among others. These securities are not eligible for investment.

We believe this approach allows for us to not only negative screen, but also incorporate positive impact into our selection process by evaluating securities based on positive behavior and outcomes. These impact and ESG factors not only define our opportunity set, but they provide us with a more robust way to evaluate the financial risks and opportunities present in each security we consider for the portfolio. 

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

Our approach incorporates all three strategies.  We screen by categorizing certain securities with excessive ESG-related risk as not eligible for investment.  We use the integration strategy by categorizing securities into the positve impact part of the portfolio - i.e. choosing securities that we believe have characteristics or significant contributions to positive impact to society.  We also use the thematic strategy within the positive impact part of the portfolio by aligning those securities with one or more of our 18 impact themes based on the securities positive impact on society.  


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) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

Companies with excessive ESG-related risk such as fossil fuel exploration and production or any activity related to coal, tobacco, chemical manufacturing, weapons, and prison management, among others, are not eligible for investment.

Screened by

Description

Companies that we believe are significant contributors to society such as those that generate more than 50 percent of their revenue from a product or service that align with one ore more of our 18 impact themes or companies which have characteristics that align with one or more of our 18 impact themes and that we believe are a net benefit to society.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

Although there have been no material changes to our investment screening criteria, we update the website regularly to ensure our impact and ESG policy is always up to date.  We also include our entire policy and any explainations of any changes in our annual impact report. If there are any material changes to the policy, we would be sure to communicate directly to our clients as soon as those changes are decided.


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

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


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


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]


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

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information. [Optional]


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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