(6.6 points)
Intent
The intent of this indicator is to assess how the entity addresses ESG risks and opportunities in its investment monitoring processes/asset management and communication for its standing/current investments.
Requirements
Select Yes or No: If selecting Yes, select applicable sub-options and complete the open text box.
Does the entity formally address ESG risks and/or opportunities in its investment monitoring processes/asset management?
- Yes
- Integrate ESG risks and/or opportunities into business plans
- Describe how and which ESG risks and/or opportunities are treated or mitigated, and which tools are used: (maximum 250 words)
- Regular review of ESG risks and/or opportunities
- Describe how and which ESG risks and/or opportunities are regularly reviewed, and which tools are used: (maximum 250 words)
- Externally report or communicate ESG risks and/or opportunities
- Describe how and which ESG risks and/or opportunities are reported or communicated externally, and which tools are used: (maximum 250 words)
- Who are the risks and/or opportunities communicated to (Provide applicable evidence in file upload or URL):
- Community/public
- Investors
- Regulators/government
- Special interest groups
- Integrate ESG risks and/or opportunities into business plans
- No
-
Provide additional context for the answer provided (not validated, for reporting purposes only)
________________________
-
Prefill: This indicator is similar to the one included in the 2019 Assessment and some sections have been prefilled from the 2019 Assessment. Review the response and/or evidence carefully.
Changes 2020: Added new option i.) ‘Community/Public’ for ‘Who are the risks and/or opportunities communicated to’ ii.) ‘Other’ checkbox option removed.
Validation
Open Text Box requirements: The text must include all of the applicable elements below:
- Identify which specific ESG risks and/or opportunities are addressed.
- Indicate how they are addressed(i.e. processes or approach).
- Indicate which tools are used (i.e. risk matrices, management systems).
Evidence: Document upload or hyperlink is required. The evidence should sufficiently support all of the items selected for this question. If a hyperlink is provided, ensure that it is not outdated and the relevant page can be accessed within two steps.
Evidence Requirements:
- Must support the process(es) selected and the statements made in the open text box.
- If selecting ‘Externally report or communicate” the evidence must also highlight sections indicating stakeholders to whom the risks are communicated to.
Evidence examples may include but are not limited to:
- Extracts or sections of internal policy or official documents describing the entities formal process and approach to addressing ESG risks and/or opportunities.
- Extracts of business plans, presentation material, board meeting agenda/minutes, investment memos, review documents, reports from third party advisors and official documents that address how and which ESG issues and /or opportunities are addressed and with which tools.
Evidence completeness: The entity may redact any portion of evidence not necessary to illustrate the overall answer or selected sub- option(s).
Document upload: Participants may upload several documents. When providing a document upload, it is mandatory to indicate where relevant information can be found within the document.
Scoring
This indicator is scored as a Two Section Indicator (i.e. Section 1: 'Elements' response and, Section 2: 'Evidence' response).
Section 1 The first section of this indicator is split into three subsections. Fractional points are awarded based on:
- The number of checkboxes (elements of process) selected.
- The open text box response and compliance described in the “validation” section above.
- The number of stakeholder groups selected.
Diminishing Increase in Score approach: As indicated by the blue line, some elements of this indicator are scored based on a Diminishing Increase in Score approach, per additional checkbox selected.
Section 2 ‘Evidence’ is mandatory for this indicator. Therefore, no points will be awarded unless the hyperlink and/or the uploaded document is considered valid, based on the evidence criteria stated above. The evidence is validated which determines a multiplier, according to the table below:
Text Box: The text box is validated, and its validation status is determined based on the requirements of the indicators. Various validation status lead to different scores according to the table below:
Validation status | Score |
---|---|
Full points | 2/2 |
Partial points | 1/2 |
No point | 0 |
Terminology
Community/Public: Persons or groups of persons living and/or working in any areas that are economically, socially or environmentally impacted (positively or negatively) by an entity’s operations.
Investment monitoring process: A process that monitors the performance of entity's standing/current investments on a regular basis.
Investors/shareholders: The entity’s current investors and/or equity stake owners in the entity.
Regulators/Government: The state and/or local authoritative and administrative governing body.
Special interest groups: Organization with a shared interest or characteristic (e.g. trade unions, non- governmental organizations).
References
Indicator partially aligned with
PRI Reporting Framework 2018, Direct Infrastructure Supplement, INF 11, INF 14
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