ESG Dashboard Overview ESG Dashboard

2y ago
36 Views
3 Downloads
728.49 KB
6 Pages
Last View : Today
Last Download : 2m ago
Upload by : Tripp Mcmullen
Transcription

March 2018ESG Dashboard OverviewESG DashboardEnabling ESG integration across our investment teamsResponsible investing is part ofour heritage. It is entrenched inour investment decisions: we believethat environmental, social andgovernance (ESG) integration is a vitalcomponent of an effective long-terminvestment strategy.Our focus on ESG considerations is illustrated well through our bespokeanalytical tool, the ESG Dashboard, which collates and views stockspecific data on important ESG risks.The ESG Dashboard was developed by Hermes Global Equities inconjunction with leading responsible investment and engagement12/01/2018QESG Score % 66 (71)SectorIndustry Peers(World) 95IndustryFinancialsEnvironmentQE Score %QE Peer Median %Sustainalytics Rating (%)MSCI Score (%)BBG Disclosure (%)Impact Ratio (%)Carbon Footprint (t/ m)Trucost Waste ( m)Trucost Water Abstraction ( m)Trucost Disclosure (%)CO2 Intensity (S)CDP Performance ScoreWater Score2Social 52 (58) 60 (67) 79 69 62 0.33 18 14 67 1000 QS Score %QS Peer Median %Sustainalytics Rating (%)MSCI Score (%)BBG Disclosure (%)UN Global Compact (S)Human Rights Policy (S)Employee Turnover Rate (S)Lost Time Incident Rate (S)Health & Safety PolicyFatalitiesFatalities/1000 EmployeesSensitive Country ActivityGINI Score (Rev/Listing)Band A-Hermes EOSiEngagementEOS undertakes engagement with the company at Tier 1 level,the engagement is currently assigned to Tim Goodman. EOSrates this company as a BBB Company. The company wasvoted at the last annual general meeting which occurred onthe 26 April 2017. The company was voted 'For' boardstructure and 'For' remuneration. In the other categories thecompany was voted 'For'.EnvironmentSocial & EthicalGovernanceStrategyQuarterly ProgressEnvironmental KPIs% Credit loans screened on CO2 impact BanksLoans subject to ESG screeningResponsible asset management QG Score %QG Peer Median %Sustainalytics Rating (%)MSCI Score (%)BBG Disclosure (%)CEO/Chair Separate (S)Independent Directors (S)Board Diversity (S)Say on PayBusiness Ethics Policy# Execs on 3 boardsISS Quickscore (Decile)20Y10046 / 41ObjsIss12-21250%63%-Active - Tier 1-2Q1UN Sustainable Development GoalsBasic 0MSCI GCESGTotalSGTotalESGTotalESGQuick Board Audit Comp ShareHigh RiskMed RiskLow RiskCARBONWATERTrucost Impact RatioTrucost PercentileTotal direct and indirect environmental costs per unit revenue.Percentile rank of company in each of the charted categories.A higher impact ratio (a higher environmental intensity) means acompany is more exposed to environmental costs.20141.001.000.800.80Water Abstraction0.600.60Waste0.400.400.200.20Land & WaterPollutantAir Pollutant0.000.00GHG12014Controversy ReportCEO PayMedian PayGolden HelloGolden ParachuteSeverance VestingOwnership Category2015Natural ResourceUse201620152,188,1322,742,076No.No 100YesIndexed StockImpactRatioIndustry ,Cat3,Cat4,Cat5Company (Outlook ve/-ve)Social Impact Of Products (Cat 3, 63 Peers)Quality And Safety (Cat 3, 61 Peers)Business Ethics (Cat 3, 71 Peers)CO2 Product Impact (Cat 2, 46 Peers)Resilience (Cat 2, 25 Peers)Marketing Practices (Cat 2, 23 Peers)Labour Relations (Cat 2, 39 Peers)Environmental Impact Of Products (Cat 2, 73 Peers)Corporate Governance (Cat 2, 35 Peers)Anti-Competitive Practices (Cat 2, 30 Peers)Accounting And Taxation (Cat 2, 31 Peers)908060Pay (% rank)CO2FootprintPeer Group Controversies705040301(100 is best)20161009080706050403020100QESG Score1%111111ISS (41%)BBG Disclosure (87%)GMO - No InvolvementMilitary - No InvolvementNuclear - No InvolvementOil Sands - No InvolvementPalm Oil - No InvolvementPesticides - No InvolvementCoal - No InvolvementTobacco - No InvolvementRemuneration% RevenueEMSCI (71%)Geographic and Business RiskAdult - No InvolvementAlcohol - No InvolvementAnimal - No InvolvementArctic - No InvolvementCont Weaps - No InvolvementFirearms - No InvolvementFur - No InvolvementGambling - No InvolvementKey Issues Sector PackQC Score 40%TotalSustainalytics (69%)Product InvolvementOperational Cost CompetitivenessStrategic Demand Shift/TransitionPhysical ImpactsCorporate Governance of Climate ChangePublic Policy influence/RegulationWider InfluenceThe company is not on the EOS CCR list.Controversial Company Report Sustainalytics GCClimate ChangeNatural Capitalis the current company value. The colour shows the annual trend: positive, negative, or only current year data is available (respectively). 67 (78) 70 (78) 62 26 86 N 60 70 YY 1 2Remuneration measuresSectors banned from lending (eg cluster bombs)ESG DashboardThe shaded column indicates the range of values for the industry peers. The blue bar is the median value of the peers. The green/red/yellow barClimate Change Risks (High Med Low)Social & Ethical KPIs Activities in sensitive countries Business ethics incidents Financial inclusionBAC US EQUITY 12/01/2018Vendor ComparisonArrows show the y-o-y trend, coloursindicate relative position to peer groupProgThe expertise of Hermes EOS has also helped define the keyperformance indicators or risk factors on which each company ismeasured. These are either generic, such as board structure, or sectorspecific, focusing on the major risks by industry – such as CO2 emissionsand fleet consumption for the automobiles industry, paper sourcing formedia and energy efficiency for airlines.QESG (53% Cov by Mkt Cap)Governance 76 (69) 60 (62) 70 49 60Y The Dashboard provides a concise digest of the ever-increasing amountof data on ESG risks. As well as incorporating a wide range of researchfrom leading providers – Sustainalytics, Trucost, Bloomberg, MSCI,FactSet, ISS and CDP – the report includes proprietary information fromHermes EOS on voting and engagement.ESG DashboardESG DashboardBANK OF AMERICA CORP (BAC US EQUITY/US0605051046)specialists, Hermes EOS. It is used by investment teams across Hermes,enabling analysts and portfolio managers to easily incorporate ESGanalysis into their stock-picking processes and, importantly, to flagstock-specific sustainability risks.2010Mkt Cap (% rank)0-2Y-1Y0%20%40%60%80%100%For illustrative purposes onlyFor professional investors only www.hermes-investment.com

ESG Dashboard Overview, March 2018Hermes Investment ManagementA clearer view of the Hermes ESG Dashboard is provided below.This is for illustrative purposes only.12/01/2018ESG DashboardBANK OF AMERICA CORP (BAC US EQUITY/US0605051046)QESG Score % 66 (71)SectorIndustry Peers(World) 95IndustryFinancialsEnvironmentQE Score %QE Peer Median %Sustainalytics Rating (%)MSCI Score (%)BBG Disclosure (%)Impact Ratio (%)Carbon Footprint (t/ m)Trucost Waste ( m)Trucost Water Abstraction ( m)Trucost Disclosure (%)CO2 Intensity (S)CDP Performance ScoreWater Score2Social 52 (58) 60 (67) 79 69 62 0.33 18 14 67 1000 QS Score %QS Peer Median %Sustainalytics Rating (%)MSCI Score (%)BBG Disclosure (%)UN Global Compact (S)Human Rights Policy (S)Employee Turnover Rate (S)Lost Time Incident Rate (S)Health & Safety PolicyFatalitiesFatalities/1000 EmployeesSensitive Country ActivityGINI Score (Rev/Listing)Band A-Hermes EOSiEngagementEOS undertakes engagement with the company at Tier 1 level,the engagement is currently assigned to Tim Goodman. EOSrates this company as a BBB Company. The company wasvoted at the last annual general meeting which occurred onthe 26 April 2017. The company was voted 'For' boardstructure and 'For' remuneration. In the other categories thecompany was voted 'For'.EnvironmentSocial & EthicalGovernanceStrategyQuarterly ProgressEnvironmental KPIs% Credit loans screened on CO2 impact BanksLoans subject to ESG screeningResponsible asset managementGovernance 76 (69) 60 (62) 70 49 60Y QG Score %QG Peer Median %Sustainalytics Rating (%)MSCI Score (%)BBG Disclosure (%)CEO/Chair Separate (S)Independent Directors (S)Board Diversity (S)Say on PayBusiness Ethics Policy# Execs on 3 boardsISS Quickscore (Decile)20Y10046 / 41ObjsIss12-212 67 (78) 70 (78) 62 26 86 N 60 70 YY 1 2Arrows show the y-o-y trend, coloursindicate relative position to peer groupProg50%63%-Active - Tier 1-2Q1Climate Change Risks (High Med Low)Operational Cost CompetitivenessStrategic Demand Shift/TransitionPhysical ImpactsCorporate Governance of Climate ChangePublic Policy influence/RegulationWider InfluenceSocial & Ethical KPIs Activities in sensitive countries Business ethics incidents Financial inclusionKey Issues Sector Pack1.00Remuneration measuresSectors banned from lending (eg cluster bombs)0.800.600.40UN Sustainable Development GoalsBasic NeedsEmpowermentControversiesClimate ChangeNatural Capital% RevenueQC Score 40%The company is not on the EOS CCR list.Controversial Company Report Sustainalytics GCMSCI GC0.200.00Controversy Report1%111111The UN Sustainable Development Goals (SDG) metric decomposes a company’s revenueacross the 17 goals. The Dashboard uses the SDGs as a framework to identify a company’sspecific focus, highlighting its reliance on green revenue sources, such as renewable energy ortransformative technologies, or social themes, such as nutrition, sanitation or social finance.The Dashboard therefore identifies forward-thinking companies that are aligned with SDGs anddelivering positive environmental and social impacts.The risk radar shows ESG controversies and issues. The larger the segment, the more severethe issue. For example, according to Sustainalytics, Category 4 and 5 are deemed severe issuesand they have high reputational impacts.For illustrative purposes onlyFor professional investors only www.hermes-investment.com

ESG Dashboard Overview, March 2018Hermes Investment ManagementThis is for illustrative purposes only.ashboardBAC US EQUITY 12/01/2018ESG DashboardVendor ComparisonThe shaded column indicates the range of values for the industry peers. The blue bar is the median value of the peers. The green/red/yellow baris the current company value. The colour shows the annual trend: positive, negative, or only current year data is available (respectively).Sustainalytics (69%)QESG (53% Cov by Mkt Cap)1009080706050403020100TotalESGTotalESGMSCI (71%)TotalESISS (41%)BBG Disclosure (87%)GTotalProduct InvolvementESGQuick Board Audit Comp ShareGeographic and Business RiskAdult - No InvolvementAlcohol - No InvolvementAnimal - No InvolvementArctic - No InvolvementCont Weaps - No InvolvementFirearms - No InvolvementFur - No InvolvementGambling - No InvolvementHigh RiskMed RiskLow RiskGMO - No InvolvementMilitary - No InvolvementNuclear - No InvolvementOil Sands - No InvolvementPalm Oil - No InvolvementPesticides - No InvolvementCoal - No InvolvementTobacco - No InvolvementCARBONWATERTrucost Impact RatioTrucost PercentileTotal direct and indirect environmental costs per unit revenue.Percentile rank of company in each of the charted categories.A higher impact ratio (a higher environmental intensity) means acompany is more exposed to environmental costs.1.002014GHG10.80Water Abstraction0.60Waste0.40Land & WaterPollutantAir Pollutant0.20Natural ResourceUse0.00201420152016RemunerationCEO PayMedian PayGolden HelloGolden ParachuteSeverance VestingOwnership Category2015ImpactRatioQESG Score2,188,1322,742,076No.No 100YesIndexed t5Company (Outlook ve/-ve)Social Impact Of Products (Cat 3, 63 Peers)Quality And Safety (Cat 3, 61 Peers)Business Ethics (Cat 3, 71 Peers)CO2 Product Impact (Cat 2, 46 Peers)Resilience (Cat 2, 25 Peers)Marketing Practices (Cat 2, 23 Peers)Labour Relations (Cat 2, 39 Peers)Environmental Impact Of Products (Cat 2, 73 Peers)Corporate Governance (Cat 2, 35 Peers)Anti-Competitive Practices (Cat 2, 30 Peers)Accounting And Taxation (Cat 2, 31 Peers)908060Pay (% rank)CO2FootprintPeer Group ControversiesIndustry RangeCompanyMedian705040301(100 is best)201610090807060504030201002010Mkt Cap (% rank)0-2Y-1YGeographic and business risk metric: The environmental impact lenses show the percentageof a company’s assets at high, medium or low-risk based on water and carbon by business andgeographical grouping.Source: Hermes as at January 2018.For professional investors only 0%20%40%60%80%100%The QESG scoring mechanism pits companies directly against the KPIs of the industries to whichthey are exposed.The remuneration metric identifies companies that are not aligned to the HermesRemuneration Principles. It also highlights areas for improvement in a company’s incentivestructure thanks to greater transparency and regulation on remuneration data.www.hermes-investment.com

ESG Dashboard Overview, March 2018The QESG Score: a pivotal rankingA valuable component of the Dashboard is the QESG score, a rankingapplied to each company, based on the information collated. This scoreis used to systematically direct the capability towards companies with anattractive ESG profile.Not only does this score capture how well a company manages ESG risk,but also the trend in this exposure. We have observed that changes in acompany’s approach to ESG risk may be as important to its share priceperformance as its current exposure.The QESG score can act as an early indicator of changing ESG risks,thereby alerting analysts and portfolio managers to potential issues andopportunities. In such situations, our investment teams can interrogatethe elements of a company’s ESG risk management through theDashboard’s hyperlinks to analytical reports, and if desired follow upwith our in-house experts at Hermes EOS. Moreover, forward-lookingmetrics available on the Dashboard, such as a company’s revenueexposure to the SDGs provide a view of future ESG risks.The QESG Score is used in the stock-selection process of our ESGfocused global equity solution.Key features of the ESG DashboardSince its inception in 2010, the ESG Dashboard has enhanced ourESG analysis. It has also been subject to a number of improvements,reflecting recent developments within ESG investing and the availabilityof more information. The latest version of the Dashboard was released inJanuary 2018.Proprietary inputThe Dashboard draws on the insights of Hermes EOS, which adviseson proxy votes and engages company directors and executives aboutESG risks that concern shareholders. It can also highlight companyspecific risks through the Controversy Indicator employed by HermesEOS. This provides an information advantage: proprietary insightsinto engagement progress and forward-looking views of the ESG riskexposures of companies, compared to the retrospective analysis ofexternal data vendors.Best-of-breed dataRather than using just one or two commercial providers of data, the ESGDashboard incorporates research from more than 10 different vendorswith specialist areas of focus. ISS, for instance, ranks each companyfor its adherence to global governance standards, and CDP helpsinform our judgments about which companies are leaders or laggardson carbon intensity. The MSCI ESG database is also connected to theDashboard. Data from MSCI provides broad coverage of ESG mattersand offers a different perspective on each company compared to otherdata providers. This helps our investment teams fully understand themateriality of these ESG risks.Quantitative and qualitative data from our vendors are complementedby engagement insights from Hermes EOS, which provide an in-depthview of how companies are responding to ESG risks.Customisable peer groupInvestment teams are able to evaluate a company’s ESG risks relativeto other companies in their investable universe, regionally or by marketcapitalisation. Industry peer groups are used to ensure that the metricsapplied are relevant.For professional investors only Hermes Investment ManagementForward-lookingOne of the most salient insights to a company’s ESG profile comes fromhow it is changing over time. However, the majority of ESG metrics arebackward-looking as the underlying data supplied by vendors is generallyupdated on a monthly basis. This is where the ESG Dashboard differs:it gauges both the current level and the degree of change in ESG risk.The Dashboard includes a number of forward-looking metrics, suchas a company’s revenue exposure to the SDGs, exposure to regionsexperiencing water stress, and to those countries with extreme inequality,which may highlight future risks to their operations and customer base.Moreover, the insights from Hermes EOS create a powerful force forpositive change. Specifically, engagements with companies provide aninformation advantage, which is a crucial component of our forwardlooking approach.QESG ScoreThe QESG Score assesses a company’s ESG metrics compared to itspeers and, crucially, how its ESG profile is changing. It pits companiesdirectly against the KPIs of the industries to which they are exposed.The Dashboard also presents any KPIs which could represent a weaknessfor the business, thereby alerting investors to any red flags or issuesworthy of corporate engagement.We also use raw data metrics, where available, and apply our experienceto assess materiality. This is a crucial part of our investment approach,as it identifies value and opportunity from ESG signals.Moreover, the Dashboard provides the tools needed to interrogate theQESG Score. The use of new and enhanced data sources means thatcompanies undergo a rigorous examination to identify ESG risks. Thisadditional data also helps our investment teams ensure that companies’business models are fit for purpose.Using the ESG DashboardThe ESG Dashboard forms an important part of the qualitative analysisperformed by our investment teams. For example, Hermes GlobalEquities uses it to identify ESG risks within companies and determinethe materiality of these risks. Any change in the level of ESG risk andprogress on current engagements are key factors that could influencean investment decision.The governance component of the QESG Score is integrated into theteam’s stock-selection process for all of its strategies, enhancing itsanalysis of these risks. Environmental and social considerations continueto be assessed as part of the fundamental due diligence on companies.This approach ensures that ESG analysis is integrated into the team’sinvestment decisions – from idea generation to portfolio constructionand monitoring.Across the business, the Dashboard ensures that our investment analystsand portfolio managers are ESG-aware and can monitor companyspecific risks. The Dashboard provides a systematic framework, enablinga sharper analysis of the available information.Accessible through Bloomberg, the Dashboard has helped our teamsintegrate ESG research into investment decisions and foster dialogue withHermes EOS about shareholder votes and engagements. This promotescompany-wide discussions about material ESG considerations.www.hermes-investment.com

ESG Dashboard Overview, March 2018Hermes Investment ManagementHermes EOS: Engaging on ESGEstablished in 2004, Hermes EOS is one of the leading providersof corporate engagement, intelligent voting, portfolio screening,public policy engagement and advisory services. It aims to create apowerful force for positive change on behalf of a growing client base ofinternational investors.Crucially, the team’s engagement approach is to establish constructivepartnerships with companies in order to deliver better outcomes for themand their investors. Discussions often take place in the local language andat the highest level, for example with the chair or the senior independentdirector.The services provided by Hermes EOS help asset owners add longterm value to their investments and manage risks by engaging withcompanies and policymakers on ESG and strategic issues.For professional investors only www.hermes-investment.com

HERMES INVESTMENT MANAGEMENTWe are an asset manager with a difference. We believe that, while our primary purpose is to helpsavers and beneficiaries by providing world class active investment management and stewardshipservices, our role goes further. We believe we have a duty to deliver holistic returns – outcomes forour clients that go far beyond the financial – and consider the impact our decisions have on society,the environment and the wider world.Our goal is to help people invest better, retire better and create a better society for all.Our investment solutions include:Private marketsInfrastructure, private debt, private equity, commercial andresidential real estateHigh active share equitiesAsia, global emerging markets, Europe, US, global, and smalland mid capCreditAbsolute return, global high yield, multi strategy,global investment grade, real estate debt and direct lendingMulti assetMulti asset inflationStewardshipActive engagement, advocacy, intelligent voting andsustainable developmentOfficesLondon New York SingaporeFor more information, visit www.hermes-investment.com or connect with us on social media:For professional investors only. Clients who fall outside of this criteria should not use the information provided in this document for investment decisions. The information hereinis believed to be reliable but Hermes does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This material is not intended toprovide and should not be relied on for accounting, legal or tax advice, or investment recommendations. This document has no regard to the specific investment objectives, financialsituation or particular needs of any specific recipient. This document is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy orsell any securities or related financial instruments. Figures, unless otherwise indicated, are sourced from Hermes. The value of investments and income from them may go down aswell as up, and you may not get back the original amount invested. Past performance is not a reliable indicator of future results. The distribution of the information contained in thisdocument in certain jurisdictions may be restricted and, accordingly, persons into whose possession this document comes are required to make themselves aware of and to observesuch restrictions. This document is not investment research and is available to any investment firm wishing to receive it.Issued and approved by Hermes Investment Management Limited (“HIML”) which is authorised and regulated by the Financial Conduct Authority. Registered address: SixthFloor, 150 Cheapside, London EC2V 6ET. HIML is a registered investment adviser with the United States Securities and Exchange Commission (“SEC”).BD01480 UK/EU/AU/SG 0003003 120/18www.hermes-investment.com

ESG Dashboard Overview, March 2018 Hermes nvestment anagement ESG Dashboard BAC US EQUITY ESG Dashboard Vendor Comparison The shaded column indicates the range of values for the industr

Related Documents:

ESG PORTFOLIO EXTENDED SUMMARY REPORT December 03, 2020 Portfolio Benchmark Weighted Avg ESG Score 6.20 6.03 Adjustment ESG Trend Positive 4.74% 15.81% LAGGARD AVERAGE LEADER Distribution of MSCI ESG Fund Ratings Universe Adjustment Total 0.81% 0.88% Score Adjustment 0.05 - ESG Trend Negative 2.02% 7.49% - ESG Laggards 1.91% 7.44% ESG Quality .

stated to apply to ESG ratings providers may apply to ESG data products providers, and vice versa. 1. The term ESG ratings and data products providers, as used in this report, covers providers who offer ESG ratings and/or ESG data products. Where there is a need to single out ESG data products providers who

ESG and financial variables is interpreted as ESG being the cause and financial value the effect, however the transmission can be interchanged. COMPONENTS/CRITERIONS OF ESG: 3 key components of ESG are - Environmental, Social and (corporate) Governance aspects. Since ESG factors are often interrelated, there may be scenarios

ESG quality, from the asset allocation mix, a question similarly posed by Schroders [2019]7. DWS Approach to ESG in SAA On the aforementioned point of inclusive versus exclusive ESG SAA approaches, we take the more inclusive approach. First, ‘ESG integration’ as for PRI is primarily a risk

Portion of cases where ESG affected portfolio construction LE 6.1 150/150 Pre-investment phase ESG risk management Compliance processes for negative screening LE 8 200/200 Post-investment phase ESG risk management Incorporation of ESG in regular reviews LE 9 150/150 Post-investment phase ESG risk management Identification of ESG incidents LE .

Example ESG Switchable Glass Sound Control Data ESG Switchable - Examples of Optical Performance* Thickness Standard Construction ESG Switchable Std dB Rating (Rw) ESG Switchable Acoustic dB Rating (Rw) 10 mm 4 mm Low Iron tempered glass x 1.52 PVB 0.4 mm LCD x 4 mm Low Iron tempered glass 35 37 12 mm 5 mm Low Iron tempered glass .

of new dashboard, click Zreate New Dashboard [ button on the dashboards view. New Dashboard will be opened in design view, ready to be designed and configured. 3.1. Free Position – Dashboard Layout In this dashboard layout mode, dashboard consist of one area where dashboard tiles (charts) are positioned in any preferred way.

The Curriculum and Instruction Department . Mukilteo School District . Independent Daily Reading Goal: To practice reading at your independent reading level. Directions: 1. Read a book at your independent reading level. 2. Have a family member ask you 2-3 questions and discuss the story with them. 2nd Grade Fiction Questions What did you picture as you read this story? What words or phrases .