Learn more the about the four pillars: Exclusions, Risk controls, Alphas and Stewardship
1. Exclusions
Standard FSI exclusions*:
- Tobacco production and cigarette manufacturing**
- Controversial Weapons (CWS)^
- Global Sanctions^^
Other potential exclusions that can be tailored to clients (note these are examples only):
- Coal: Exclude where thermal coal mining/extraction >10% revenue, or >10% of power generation capacity
- Oil Sands: Exclude where oil sands >10% of oil and gas mining/extraction
- UN Global Compact Violators#
2. Risk controls
Tailored potential carbon reductions or other ESG risk penalties
3. Alphas
Driven by economic and fundamental insight along E, S and G dimensions.
Integrated insights forming part of our diversified alpha model:
- Level and change in Carbon Efficiency
- Multiple dimensions of Governance
- Reputational and Litigation Incidents
- Board and Team Diversity
4. Stewardship
- Collaborate with FSI active teams on proxy voting and ESG issues
- Participate in firm-wide sustainability committee designed to share and develop best practise on ESG integration
- Direct and collaborative engagement with other FSI teams and external collective initiatives
- Participate in Investors Against Slavery and Trafficking (IAST) APAC, Climate Action 100+, 40:40 Vision
Please note these features are examples only. The client can customise the portfolio as they wish.
* Companies in scope for exclusion are entities that derive revenue directly from the activity, or that own more than 50% interest in entities (not including joint ventures) that derive revenue directly from the manufacture of cigarettes and other tobacco products (not including e-cigarettes and vaping), and the manufacture of certain types of controversial weapons. Where available, revenue derived from a specific activity is based on company-reported revenue within the financial statement. Where not available, revenue is derived from the company’s segment reporting or based on an analyst’s assessment.
** 0% revenue threshold.
^ 0% revenue threshold where CWS is defined as anti-personnel mines, cluster munitions, white phosphorus, biological and chemical weapons and certain types of nuclear weapons.
^^ Where companies are flagged under UN, US, EU or Australian sanctions
# Companies deemed non-compliant with global standards per our data vendors.
ESG research
ESG research has been, and continues to be, a strategic initiative for RQI Investors. We have an extensive database of ESG data and metrics licensed from third parties which we use in our research and in some cases as part of our investment process, or customised client solutions.
Disclaimer
To the extent this material contains any measurements or data related to environmental, social and governance (ESG) factors, these measurements or data are estimates based on information sourced by the relevant investment team from third parties including portfolio companies and such information may ultimately prove to be inaccurate.
To the extent this material contains any ESG related commitments or targets, such commitments or targets are current as at the date of publication and have been formulated by the relevant investment team in accordance with either internally developed proprietary frameworks or are otherwise based on the Institutional Investors Group on Climate Change (IIGCC) Paris Aligned Investment Initiative framework or such other framework, goal or target as the relevant team considers appropriate. The commitments and targets are based on information and representations made to the relevant investment teams by third parties including portfolio companies (which may ultimately prove not be accurate), together with assumptions made by the relevant investment team in relation to future matters such as government policy implementation in ESG and other climate-related areas, enhanced future technology and the actions of portfolio companies (all of which are subject to change over time). As such, achievement of these commitments and targets depends on the ongoing accuracy of such information and representations as well as the realisation of such future matters.
Any commitments and targets set out in this material may be subject to change without notice in the event of future review by the relevant team.
Want to know more?
Contact the RQI Investors team
Get the right experience for you
Your location :
Singapore
Australia & NZ
-
Australia
-
New Zealand
Asia
-
Hong Kong (English)
-
Hong Kong (Chinese)
-
Singapore
-
Japan