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

Aware Super

PRI reporting framework 2020

Export Public Responses
Pdf-img

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (C) Implementation: Integration of ESG factors

(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]

All companies researched for investment in our actively managed portfolio are assessed on a number of environmental, social and governance issues.

Environmental issues include:

- Climate change and its potential impact on investments

- The availability or over supply of water, and competition for the use of water

- Pollution and disposal of waste products

- The impact that a company and its operations have on the local environment

- Future liability risk, arising from activities such as the disposal or spillage of toxic substances, or from contamination of areas or populations

Social issues include:

- The effectiveness of a company in maintaining its ‘licence to operate’

- Labour relations

- Safety

- Adherence to international conventions

- Supply chains

- Workforce diversity

Governance issues include:

- Board composition

- Remuneration structure

- Ethics and culture

- Bribery and corruption


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

New selection options have been added to this indicator. Please review your prefilled responses carefully.

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis.

10.3. Describe how you integrate ESG information into portfolio weighting.

Companies identified with material ESG issues may be excluded from the portfolio - for example poor governance.

10.4. Describe the methods you have used to adjust the income forecast/valuation tool.

After the ESG issues are identified the analyst incorporates this into their cash flow forecasts which drives the valuation. For example higher operating costs relating to compliance with increased regulation, supply chain disclosure (Modern Slavery).  Higher capital requirements are also considered e.g. Insurers due to physical climate risk.

10.5. Describe how you apply sensitivity and /or scenario analysis to security valuations.

A base, bear and bull scenario analysis is performed on all companies when undertaking research. These scenario analysis look at financial implication of relevant and material E, S and G risks.

10.6. Additional information. [OPTIONAL]


Top