PUBLIC RI REPORT 2021 PILOT
eQ Asset Management Ltd
Generated 2022-08-18
About this report
The PRI Reporting Framework helps to build a common language and industry standard for reporting responsible investment activities. Public RI Reports provide accountability and transparency on signatories’ responsible investment activities and support dialogue within signatories’ organisations, as well as with their clients, beneficiaries and other stakeholders.
This Public RI Report is an export of the signatory’s responses to the PRI Reporting Framework during the 2021 reporting period. It includes the signatory’s responses to mandatory indicators, as well as responses to voluntary indicators that the signatory has agreed to make public.
The information is presented exactly as it was reported. Where an indicator offered a multiple-choice response, all options that were available to select from are included for context. While presenting the information verbatim results in lengthy reports, the approach is informed by signatory feedback that signatories prefer that the PRI does not summarise the information.
Context
In consultation with signatories, between 2018 and 2020 the PRI extensively reviewed the Reporting and Assessment processes and set the ambitious objective of launching in 2021 a completely new investor Reporting Framework, together with a new reporting tool.
We ran the new investor Reporting and Assessment process as a pilot in its first year, and such process included providing additional opportunities for signatories to provide feedback on the Reporting Framework, the online reporting tool and the resulting reports. The feedback from this pilot phase has been, and is continuing to be analysed, in order to identify any improvements that can be included in future reporting cycles.
PRI disclaimer
This document presents information reported directly by signatories in the 2021 reporting cycle. This information has not been audited by the PRI or any other party acting on its behalf. While this information is believed to be reliable, no representations or warranties are made as to the accuracy of the information presented.
The PRI has taken reasonable action to ensure that data submitted by signatories in the reporting tool is reflected in their official PRI reports accurately. However, it is possible that small data inaccuracies and/or gaps remain, and the PRI shall not be responsible or liable for such inaccuracies and gaps.
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Table of Contents
Module/Indicator
Page
Senior Leadership Statement (SLS)
4
Organisational Overview (OO)
8
Investment and Stewardship Policy (ISP)
30
Manager Selection, Appointment and Monitoring (SAM)
68
Listed Equity (LE)
84
Fixed Income (FI)
98
Real Estate (RE)
111
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Senior Leadership Statement (SLS)
Senior leadership statement
Our commitment
Indicator
Type of indicator
Dependent on
Gateway to
Disclosure
Subsection
PRI Principle
SLS 1 S1
CORE
N/A
N/A
PUBLIC
Our commitment
GENERAL
Why does your organisation engage in responsible investment?
What is your organisation’s overall approach to responsible investment?
What are the main differences between your organisation’s approach to responsible investment in its ESG practice and in other practices, across asset classes?
eQ Asset Management has for several years acted as an active forerunner for responsible investment. We have signed the United Nations’ Principles for Responsible Investment (PRI) in 2010. We promote responsible investment at the Finnish Venture Capital Association, Invest Europe and Rakli. Since the spring of 2020, eQ has been member of Finance Finland’s Responsibility Committee. In addition, we are an active member of Finsif (Finland’s Sustainable Investment Forum) and have signed CDP’s Climate Change programme.
eQ Asset Management’s principles for responsible investment form a framework to the Group’s investment operations and their processes. The principles cover all asset classes, and their application depends on the asset class and investment method. These principles have been updated in the autumn of 2020, and eQ Asset Management’s Board has approved them on 3 September 2020.The principles for responsible investment are available on eQ’s website. The corporate governance principles of eQ Fund Management Company Ltd and eQ Asset Management Ltd, which were updated in the spring of 2020, can also be found on the website.
Responsible investment is not a separate consideration for eQ, as ESG is part of all investment operations. In practice this means that sustainability is continuously and systematically integrated in the selection, monitoring and reporting of investees in all investment areas of eQ. eQ’s Director for Responsible Investment is responsible for this work and its development. Each investment team also has a dedicated person who has deeper knowledge of responsible investments. In addition to these persons, we believe that it is of utmost importance that all our portfolio managers and analysts understand, recognise and take into account the potential sustainability risks and opportunities pertaining to investments. This is something that cannot be outsourced. In addition to ESG analyses, it is an important part of a portfolio manager’s job to have a regular engagement dialogue with the investees.
eQ Asset Management’s activities related to responsible investment are also discussed by eQ Plc’s Board of Directors once a year. In addition, the Board of eQ Fund Management Company Ltd receives regular reports on ESG events and the engagement dialogue with the investees in all of eQ’s investment areas.
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Annual overview
Indicator
Type of indicator
Dependent on
Gateway to
Disclosure
Subsection
PRI Principle
SLS 1 S2
CORE
N/A
N/A
PUBLIC
Annual overview
GENERAL
Discuss your organisation’s progress during the reporting year on the responsible investment issue you consider most relevant or material to your organisation or its assets.
Reflect on your performance with respect to your organisation’s responsible investment objectives and targets during the reporting year. This might involve e.g. outlining your single most important achievement, or describing your general progress, on topics such as the following:
refinement of ESG analysis and incorporation
stewardship activities with investees and/or with policy makers
collaborative engagements
attainment of responsible investment certifications and/or awards
Integrating ESG matters in equity and fixed income is very down to earth and part of the portfolio manager’s day-to-day work when selecting investments and managing funds. We aim at excellent long-term return. Responsible and sustainable operations are fully in line with this goal, and that is why the ESG analysis is a key element in the investment processes of all our funds. We influence our investees actively in questions pertaining to sustainability by having a direct dialogue with companies. In 2020 we carried out altogether 144 engagement activities in our equity and fixed income funds in the following areas: 4 within governance, 2 within social responsibility,
131 regarding the availability of the sustainability report and 7 regarding the follow-up of a verified violation of a norm. The reason for the high number of activities related to the availability of the sustainability report in 2020 was the fact that our portfolio managers carried out an active engagement dialogue with all investments that do not yet report their emissions to the CDP organisation. We were happy to see that there is interest in emission reporting. Some companies already had this on their agenda but with some, we just began discussing emission reporting. In general, we wish to encourage companies to report to their stakeholders information on their emissions, the sustainable products that they offer and on how they take climate change into account in their business operations. In connection with the theme, we also signed CDP’s joint initiative that aims at encouraging companies to set science-based emission reduction targets for their operations.
When a property is purchased, the due diligence process always comprises sustainability matters. During the ownership period, measures are taken in separate properties in order to promote sustainability. Among the ma jor pro jects in 2020 can be mentioned the low- carbon roadmap that we have drawn up for eQ Community Properties (former Care) and Finnish Real Estate funds. The aim of the roadmap was to define the measures with which funds can reduce their carbon footprint in an efficient and appropriate manner. We set carbon neutrality target by 2030 for eQ Community Properties and Finnish Real Estate funds and defined measures to meet the target. The use of green district heating has increased considerably in 2020. The reducing impact of this measure was about 6500 tCO2 in 2020. Also, Breaam In-Use Certification targets were defined for both real estate funds. We use the results from the GRESB as one important tool when monitoring our sustainability work. Year 2020 was our second reporting year for GRESB.
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Disclaimer
eQ Oyj published this content on 11 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2022 11:21:07 UTC.