fulfill your pri reporting requirements - iss · really like the way the modules flow and felt as...
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FULFILL YOUR PRI REPORTING REQUIREMENTS ISS Webinar | Thursday, 3 March 11:00 AM EST | 8:00 AM PST | 4:00 PM GMT | 5:00 PM CET
ISS | Institutional Shareholder Services Inc.
Focus areas for today’s webinar
Introduction
PRI Reporting & Assessment Framework › Key areas of focus for 2016
Mandy Kirby Head of Reporting & Assessment, PRI
PRI ISS Solutions Overview › PRI principles ISS Solutions at a glance › Example: Principle 1 ISS Solutions
Ulrika Hasselgren Head of Sustainable & Responsible Investment, ISS
PRI ISS (Proxy) Voting Reporting › How ProxyExchange can help › Example: Principle 2 ISS Solutions
Jean-Nicolas Caprasse Head of European Business, ISS
Q&A
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ISS | Institutional Shareholder Services Inc.
Delivering a one-stop shop for Governance & RI in line with the Principles for Responsible Investment
RI & Proxy Voting Policy
Governance & ESG Research and Analysis
Dialogue & Engagement
Proxy Voting
Securities Class Action
Reporting & Disclosure
End-to-end Governance & RI Solutions
Experience, Expertise &
Service
Develop policies that offer a credible, sustainable approach and an established process through Policy service
Integrate policy with Governance research & scoring, ESG research & screening, proxy research & data services
Meet global stewardship codes, PRI reporting requirements,
through Voting and Engagement Disclosure service
Exercise active ownership through Proxy Voting service
Exercise active ownership through company dialogue service with focus on performance, as well as dialogue with stakeholders
Exercise active ownership through securities class
action service
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PRI REPORTING & ASSESSMENT FRAMEWORK
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Mandy Kirby Head of Reporting & Assessment PRI
ISS | Institutional Shareholder Services 4
Reporting & Assessment -
Proxy Voting
March 2016
Executive summary
The PRI at a glance
Why responsible investment?
PRI services
Your dedicated PRI team
Value Proposition
AGENDA
Introduction to Reporting & Assessment
How to report to PRI
PRI’s proxy voting indicators
Reporting support
Q&A
Executive summary
The PRI at a glance
Why responsible investment?
PRI services
Your dedicated PRI team
Value Proposition
THE PRI AND THE SIX PRINCIPLES
The PRI works with its international network of signatories to put the six Principles for Responsible Investment into practice. Its goals are to understand the investment implications of environmental, social and governance issues and to support signatories in integrating these issues into investment and ownership decisions.
The six Principles were developed by investors and are supported by the UN. They have nearly 1,400 signatories from over 50 countries representing US$59 trillion of assets.
The six Principles for Responsible Investment:
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Executive summary
The PRI at a glance
Why responsible investment?
PRI services
Your dedicated PRI team
Value Proposition
REPORTING & ASSESSMENT
MEASURE PROGRESS AGAINST YOUR TARGETS AND YOUR PEERS
“I had budgeted several weeks to complete it and found it took far less time. I
really like the way the modules flow and felt as if I always had this big picture
visibility of where I'd been, where I was, and where I needed to go.”
California State Teachers' Retirement System, United States
“We regard the reporting as a significant ESG implementation process for
identifying future improvement and reviewing our activities for the next year." Nissay Asset Management Corporation, Japan
“The reporting has been an informative exercise that has indicated just how
much we can improve our engagement and activities. The questions will form
the basis on which we seek to enhance our activity.” London Borough of Haringey Pensions Committee, United Kingdom
Evaluates progress against industry-standard framework (some signatories are beginning to audit their responses) and to benchmark performance against peers’
Strengthens internal procedures and builds ESG capacity
Delivers ongoing PRI feedback and tools for improvement
Presents the big picture – the dataset and Report on Progress are a huge resource for best practice
Summarizes your RI activities – valuable for engaging with internal staff, clients, shareholders and regulators
Benefits for signatories
“The PRI reporting framework has been a useful tool in understanding how
our responsible investment practices are being perceived by the market.”
Itaú Asset Management, Brazil
THREE STEPS TO REPORTING
PRI’s REPORTING FRAMEWORK
MODULE STRUCTURE
Introduction
Pre-investment/ ESG incorporation
Post-investment/Active Ownership
Outputs and Outcomes
Communication
GATEWAY
CORE ASSESSED
ADDITIONAL ASSESSED
DESCRIPTIVE
PEERING
INDICATOR TYPES
ONLINE REPORTING TOOL
https://pri.reportingframework.com/
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Transparency
Report
Assessment
Report
Report on
Progress
OUTPUTS
SUBMIT AND RECEIVE YOUR OUTPUTS
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REPORTING CYCLE
Live Reporting Period
RI
Transparency
Reports
Online Tool Closed
Assessment
Report
Report On
Progress
Jan 4,
2016 Jan 2017
March
31, 2016
June
2016
Sept
2016
PROXY VOTING
INDICATORS
PRI’s REPORTING FRAMEWORK
2016 REPORTING CHANGES
Indicators refined to improve data quality, reduce misinterpretation
Strategy and Governance: module renamed from Overarching Approach, indicators updated with new selection options
Fixed income definitions revised and new module
Listed equity – Active ownership: Proxy voting indicators updated with new selection options
All changes accessible in the online tool or module downloads – listed under Preface
Review of proxy voting indicators is underway during 2016 to ensure they are reflecting signatory processes
GATEWAY INDICATORS
Organisational Overview module triggers proxy voting indicators
LISTED EQUITY – ACTIVE OWNERSHIP
Summary of indicators
LISTED EQUITY – ACTIVE OWNERSHIP
Indicator examples
MANAGER SELECTION,
APPOINTMENT AND MONITORING
Summary of indicators
PROXY VOTING – SERVICE PROVIDERS
How to report your service provider activity
Strategy and Governance
Discuss components and approach of RI policy
Listed Equity – Incorporation
LEI 04 – what information contributes to investment decision making and who provides it
LEI 05 – whether ESG information derived voting activity is shared with investment managers
R&A 2015 DATA
Based on 463 respondents to the proxy voting section of the module
APPROACH TO PROXY VOTING
Based on 463 responses
ENSURING VOTES ARE CAST
(Voluntary Data)
Based on 337 responses
INFORMING COMPANIES OF RATIONALE
Based on 463 responses
SHAREHOLDER RESOLUTIONS
(Voluntary Data)
Of those Signatories that did file
shareholder resolutions, the majority
reported less than 3 filed in the
reporting year.
Based on 349 responses
DISCLOSURE OF VOTING ACTIVITIES
Based on 463 responses
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SIGNATORY SUPPORT
Phone support
+44 (0) 2037143187
Online support
www.unpri.org/reporting
https://pri.reportingframework.com
E-mail support
Where the global responsible investment community meets
6-8 September 2016
Marina Bay Sands, Singapore unpri.org/Singapore2016
#PRIinPerson
PRI ISS SOLUTIONS OVERVIEW
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Jean-Nicolas Caprasse Head of European Business, ISS
Ulrika Hasselgren Head of Sustainable & Responsible Investment Business, ISS
ISS | Institutional Shareholder Services 32
ISS | Institutional Shareholder Services Inc.
Compliance with PRI
ISS is pleased to be a professional service provider signatory to the PRI
PRI Principles ISS Services
Incorporate ESG Issues into Investment Analysis
› Investment Tools and Data, including: Data feeds, ISS Governance QuickScore, ExecComp Analytics, Special Situations Research, ESG Research and Screening Services
Act as Active Owners and Incorporate ESG Issues into Ownership Policies & Practices
› Governance Research and Proxy Voting Services › Securities Class Action Services › RI Policy Services
Seek Appropriate Disclosure on ESG Issues by Investee Companies
› Engagement tracking through ProxyExchange › Voting on ESG-related shareholder resolutions › Pooled Engagement
Promote Acceptance & Implementation of Principles in the Investment Industry
› Engagement Support and Pooled Engagement Services to facilitate and improve investor-issuer dialogue
Work with Investors to Enhance Effectiveness in Implementing PRI Principles
› Engagement Support and Pooled Engagement Services to facilitate and improve investor-issuer dialogue
› Governance Exchange provides an online governance community
Report on those Activities › Vote Disclosure Service › Engagement Support Services: Reporting module
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2
3
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ISS | Institutional Shareholder Services Inc.
Compliance with PRI: Example Principle 1
How ISS Investment Services can help
PRI Principles ISS Services
Incorporate ESG Issues into Investment Analysis
› Investment Tools and Data, including: Data feeds, ISS Governance QuickScore, ExecComp Analytics, Special Situations Research, ESG Research and Screening Services
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Details of your responsible investment policy
ESG information used
ESG information integrated in investment decision making
SG 01.1
LEI 04.2
LEI 05.1
PRI Indicator
› RI Policy Services
› Governance QuickScore, ExecComp Analytics, Special Situations Research, ESG Research and Screening Services
› Governance QuickScore, ExecComp Analytics, Special Situations Research, ESG Research and Screening Services
How ISS services can help
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ISS | Institutional Shareholder Services Inc.
Compliance with PRI: Example Principle 2
Proxy voting: Direct – Listed Equity module
LEA 02 Interact with companies on ESG issues › Engagement as part of research process
LEA 17 Description of voting policy › Governance Research and Proxy Voting Services
LEA 18 Typical approach to proxy voting decisions
› Governance Research to support client’s own decision making
LEA 20 Confirmation of votes › Participation in Vote Confirmation Projects
LEA 21 Securities lending programme › Global Share Recall Service
LEA 22 Rationale for dissent › Corporate Contact Database Service
LEA 23 Percentage of proxy votes cast › Proxy Voting Service
› Board Statistics Report
LEA 24 Proportion of ballot items that were for/against/abstentions
› Proxy Voting Service
› Board Statistics Report
LEA 26 Examples of proxy voting activities › Meeting Results Service
LEA 27 Disclosing of voting activities › Voting Disclosure Service
PRI Principles ISS Services
Act as Active Owners and Incorporate ESG Issues into Ownership Policies & Practices
› Governance Research and Proxy Voting Services › Securities Class Action Services › RI Policy Services
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PRI Indicator How ISS services can help
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ISS | Institutional Shareholder Services Inc.
2016 PRI Reporting: a User Guide for ISS Clients
2016 User Guide for ISS Clients › Designed to support clients responding
to PRI Reporting Framework
› Contains fully updated suite of integrated ESG solutions from ISS and ISS-Ethix
› Not prescriptive
› Produced in discussions with PRI
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ISS | Institutional Shareholder Services Inc.
Questions & Answers
Mandy Kirby
Head of Reporting and Assessment
PRI
Ulrika Hasselgren
Head of Sustainable & Responsible Investment Business
ISS | Institutional Shareholder Services
Jean-Nicolas Caprasse
Head of European Business
ISS | Institutional Shareholder Services
If you have questions, please submit them through the Q&A function in the box on the right side of your screen.
www.issgovernance.com
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