Top marks for responsible investment approach

01.08.2018
For the fourth year in a row, Sparinvest has received top marks (A+ for Strategy and Governance) from the Principles for Responsible Investment (PRI) for its approach to responsible investing and ESG integration.

The Group also scored straight A’s across each of the asset classes that it manages. Nichola Marshall, Head of the Responsible Investment at Sparinvest commented:

“Naturally, we are delighted to maintain this solid track record, because the PRI ratings are among the few that are based on an in-depth consideration of exactly what asset managers do to invest responsibly.”

The PRI rating considers how asset managers tackle ESG opportunities and risks in their investment processes, and how they work with investee companies - through voting and engagement – to help them to exploit their ESG opportunities and mitigate risks. This approach stands in contrast to other forms of Responsible Investment rating, which focus purely on which companies are in the portfolios, and therefore have a heavy bias toward “best-in-class” approaches to ESG.

PRI Assessment Scores 2018
Sparinvest scores

PRI Scoring Modules Sparinvest
2018
Median Score
2018
Sparinvest
2017
Strategy & Governance
A+ A A+
Listed Equity Incorporation
A+ B A+
Listed Equity Active Ownership
A B A
Fixed Income SSA (Gov Bonds)
A+ B B
Fixed Income Corporates
A B B
Fixed Income Securitized
A C C

Source Sparinvest: The 2018 PRI Assessment scores shown are extracts from the full UN PRI Assessment Report 2018 for Sparinvest Group which, available at sparinvest.lu. or at the PRI Data Portal. 

Further information
Established in 2005, PRI is the world’s largest international responsible investment network with more than 1,800 signatories. The PRI is funded primarily via the annual membership fee payable by all signatories. Additional funding comes from grants from governments, foundations and international organisations. Reporting on progress in implementing the principles forms Principle 6 of the 6 principles that signatories commit to (see below). The PRI reviews reporting and delivers assessments free of charge. This is the first year since the introduction of scoring that the PRI has introduced minimum requirements* for signatories. Companies failing to meet these requirements by 2020 risk being delisted.

Signatories’ commitment
As institutional investors, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that environmental, social, and corporate governance (ESG) issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and through time).

We also recognise that applying these Principles may better align investors with broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to the following:

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.

The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.

Mission

Our mission is to deliver the best long-term performance with a strong emphasis on risk. Based on a systematic and objective approach to investment - and a great commitment.

 

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