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Ecofact

Service Providers Framework 2020

You are in Strategy and Governance » Policy on ESG beliefs

Policy on ESG beliefs

SG 01. Responsible investment policy

01.1. Describe how your organisation’s philosophy incorporates environmental, social and governance factors, and the link to your business offerings.

Since 1998, ECOFACT has been helping clients to understand the risks and opportunities that ESG issues pose for the financial sector.

We provide due diligence solutions, risk assessments, and portfolio screenings for banks, insurers, and asset owners. ECOFACT also publishes the Policy Outlook tool, and the ECOFACT Quarterly.

Policy Outlook

The Policy Outlook is a regulatory monitoring system that helps our clients to monitor regulatory change pertaining to sustainable finance and corporate responsibility. Policy Outlook makes it easy to keep track of hard and soft law initiatives, stay on top of evolving ESG regulation and identify trends thanks to updates and in-depth analyses.

The ECOFACT Quarterly

The ECOFACT Quarterly is a briefing tailored to the needs of individuals and teams in charge of assessing and controlling environmental and social risks in corporate banking, investment banking and insurance.

Risk Assessments

Being linked to controversial environmental and human rights issues may lead to financial losses, reputational damage, regulatory sanctions or even litigation. We support risk management and compliance units in assessing potentially controversial clients, transactions, corporate partnerships and other business relationships.

Portfolio Screening

Regulation requires financial institutions to assess potentially controversial companies they invest in or support. We will help our clients identify criteria in line with international and national standards and determine their own unique tolerance to risk as an asset owner, lender or underwriter. We screen client portfolios as well as equity and debt portfolios consisting of both listed and non-listed entities.

Monitoring Peer Policies

Monitoring peer policies is a time-consuming task that involves significant resources. Our new research product provides financial institutions with a coordinated analysis of ESG policies based on a neutral, sound, and transparent methodology. The methodology and scope are informed by the needs of the participating institutions.

01.2. Indicate whether you have policies that formalise the incorporation of your ESG beliefs in your business offerings.

01.3. Indicate the components/types of your internal policy and provide the URL and/or an attachment of the document/s if they are publicly available.

Policy components/types

Public availability

01.4. Indicate how these are put into practice internally across the organisation.

01.5. Additional information [OPTIONAL]


SG 02. Norms used to develop policies

02.1. Indicate what frameworks and guidelines you have used to develop your organisation’s policies. Tick all that apply.

02.2. Additional information. [OPTIONAL]


SG 03. Policy offerings to clients

03.1. Indicate whether you offer standard, off the shelf, policies to clients as part of your product offerings, and/or whether you create tailored versions for individual clients.

Off the shelf
Tailored
Asset class-specific RI guidelines
Sector-specific RI guidelines
Screening/exclusions policy
Engagement policy
(Proxy) voting policy
RI guidelines set out within the Investment Policy Statement (IPS)
RI guidelines set out in a freestanding RI policy
Multi-year RI implementation project plan
Conflict of interest management policy
Stockbroker allocation policy
Securities lending policy
Other, please specify (1)
Other, please specify (2)
Other, please specify (3)
None of the above

03.2. Provide a brief description of the key elements, any variations, or exceptions applying to these policies.

ECOFACT supports clients in understanding the risks and opportunities that ESG issues pose for the financial sector. Whenever we support clients in developing any kind of policies, our focus is the incorporation of ESG factors into such policies. Such projects are also supplemented by policy benchmarking.

03.3. Additional information. [OPTIONAL]


SG 04. ESG/RI in business offerings

04.1. Briefly describe how you include ESG/RI factors as part of your business offerings.

Business area

Investment Consultancy

How you include ESG/RI factors

With our consulting and advisory services, we translate ESG risks into relevant analyses and practical strategies for our clients. We conduct ESG risk assessments, and we screen their portfolios according to bespoke ESG/RI criteria.

Research and Data Provision

How you include ESG/RI factors

Our focused research provides insights into material ESG risks, as well as current and future regulatory expectations related to responsible business conduct, sustainable finance, and corporate responsibility.

04.2. Indicate the roles in your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for ESG/RI within the organisation.

Roles present in your organisation
Oversight/accountability for ESG/RI
Implementation of ESG/RI
Board
Directors
Chief Executive Officer (CEO), Chief Financial Officer (CFO)
Chief Operating Officer (COO), Chief Information Officer (CIO)
Other chief-level staff

Please specify

          Senior Consultants
        
Other heads of department

Please specify

          Head of Portfolio Screening, Head of Risk Assessments, Head of ECOFACT Policy Outlook
        

Please specify

          Head of Portfolio Screening, Head of Risk Assessments, Head of ECOFACT Policy Outlook
        
Dedicated ESG/RI staff
Other role, specify (1)
Other role, specify (2)
Other role, specify (3)
None of the above

04.3. Indicate how you ensure ESG/RI expertise for the roles where there are RI oversight/accountability or implementation responsibilities.

04.4. Indicate whether your organisation has any ESG/RI linked incentives for its employees.

04.6. Describe how you ensure that your employees incorporate ESG/RI into services through other mechanisms than ESG/RI linked incentives.

All our services focus on ESG/RI, therefore, ESG/RI is always incorporated by our clients.

04.7. Additional information [OPTIONAL]


SG 05. Outsourcing of services (Private)


SG 06. Providing training/education

06.1. Indicate whether you provide training/educational services on ESG/RI. Tick all that apply.

          Client advisors; students
        

06.2. Describe the main components of your training/educational services on ESG/RI and any variations depending on the group you provide training/education to.

Our training/educational services on ESG/RI are tailored to the needs of the target group.

06.3. Describe whether these training/educational services include any commercial elements.

          Our training/educational services do not include any commercial elements.
        

06.4. Additional information. [OPTIONAL]


SG 07. Applying, advancing and promoting the PRI principles

07.1. Describe how your organisation applies, advances and promotes the PRI Principles.

ECOFACT applies, advances, and promotes the PRI Principles in various ways.

For example, we host knowledge sharing events that address topics closely linked to the PRI Principles, namely environmental and social risk, and corporate responsibility:

The Policy Outlook Conference brings together peers and experts from the fields of public policy, legal & compliance, corporate responsibility and sustainability to explore how financial firms are addressing corporate responsibility regulations.

The Environmental and Social Risk (ESR) Roundtable provides an opportunity for peers to discuss the challenges that arise as environmental and social issues are further integrated into financial institutions’ business with corporate clients.

In our day-to-day work, we support risk management and compliance units to assess, from an environmental and social risk perspective, potentially controversial clients, transactions, corporate partnerships and other business relationships. We also provide assessments at the level of countries or sectors. We also support our clients with strategies to address the controversial environmental and social aspects of a transaction appropriately, mitigate negative impacts and reputational risks.

WIth our ECOFACT Quarterly, we brief environmental and social risk experts on high risk sectors, emerging risks, relevant tools, and peer pressure.

The ECOFACT Policy Outlook supports our clients in monitoring regulatory change in corporate responsibility.

07.2. Highlight whether there are any ways that your organisation would like to engage further with the PRI. [OPTIONAL]


SG 08. Actions taken to promote responsible investment

08.1. Indicate which of the following actions your organisation has taken to promote responsible investments during the reporting year, independently of collaborative initiatives.

08.2. Additional information. [OPTIONAL]


SG 09. Long term trends

09.1. Indicate which of the following long-term trends are addressed in your product outputs.

09.2. Explain how this long-term trend affects your product outputs.

ECOFACT supports clients in understanding the risks and opportunities that ESG issues pose for the financial sector. Depending on the project, changing demographics may be addressed in our research or consulting services.

09.2. Explain how this long-term trend affects your product outputs.

ECOFACT supports clients in understanding the risks and opportunities that ESG issues pose for the financial sector. Depending on the project, climate change may be addressed in our research or consulting services.

09.2. Explain how this long-term trend affects your product outputs.

ECOFACT supports clients in understanding the risks and opportunities that ESG issues pose for the financial sector. Depending on the project, resource scarcity may be addressed in our research or consulting services.

09.2. Explain how this long-term trend affects your product outputs.

ECOFACT supports clients in understanding the risks and opportunities that ESG issues pose for the financial sector. Depending on the project, technology developments may be addressed in our research or consulting services.


SG 10. Interaction with asset owners

10.1. Indicate whether you interact with asset owner clients.

10.2. Indicate the typical frequency and type of interactions with your asset owner clients.

Type of interaction

Frequency

          Depends on client needs.
        

10.3. Additional information. [OPTIONAL]


SG 11. Aligning approach with investor goals

11.1. Describe how you typically align your organisation’s philosophy and approach to ESG/RI with your investor clients’ goals.

11.2. Additional information. [OPTIONAL]


SG 12. ESG recommendations not aligned with investor goals

12.1. Describe what steps you take, if any, when your ESG recommendations are not in line with your investor clients’ goals.

12.2. Additional information. [OPTIONAL]


SG 13. Seeking feedback from clients

13.1. Indicate whether you seek feedback from clients on your RI/ESG services and product offerings

13.2. Describe how you use this feedback in your RI/ESG services and product offerings.

We value the feedback from our clients and incorporate it - whenever possible and applicable - into our services and product offerings.


SG 14. Managing conflicts of interest

14.1. Indicate whether your organisation has a policy for managing potential conflicts of interest.

14.2. Describe how you manage potential conflicts of interest.

In cases of potential conflicts of interest, we have an escalation process in place.

14.3. Describe how you ensure that company employees do not derive any personal gain from the use of information collected during your work process.

We have standard procedures in place to ensure that company employees do not derive any personal gain from the use of information collected during our work.

14.4. Additional information. [OPTIONAL]


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