RM1.2: ESG Risks and Opportunities in Investment Monitoring Processes/Asset Management – Above Green

(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
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 If a hyperlink is provided, ensure that it is not outdated and the relevant page can be accessed within two steps.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