ESG considerations are taken into account in the manager-selection process. Managers contending for a mandate are required to fill out a request for proposal (RfP) which includes ESG-related questions.
Better-articulated and more-integrated ESG policies, scrutinised in the due diligence process (including resources, staff, systems and databases - dedicated to ESG), will compare favourably as part of the aggregate scoring of the manager’s organisation and investment process. As part of the operational due diligence (ODD) process, emphasis is put on a thorough review of the manager’s governance structure. The ODD also includes a check on whether the firm is a signatory to the UNPRI - which is a preference but not a formal requirement.
Any manager ultimately selected will be required to provide a declaration to refrain from investments in companies that are involved in the manufacture, sale or distribution of cluster munitions and anti-personnel landmines. Furthermore, managers are required to live by the Shell General Business Principles or have equivalent principles in place. These principles are in line with the United Nations Global Compact.
After selection, SSPF - via SAMCo – engages with the managers to ensure ESG considerations remain on their agenda.