Summary of responses to the PRI reporting and assessment tool 2008

PREVI

Organisational Overview
1. What were your organisation's total assets under management as of 31 December 2007 (in millions)? 77894
Please select currency United States dollar (USD)
1a. If 'Other' was selected, please specify the other currency here
2. What category would best describe your organisation? Pension or superannuation or retirement or provident fund or plan
3. What proportion (in %) of your fund is defined benefit and what proportion (in %) is defined contribution? (please only answer this question if you answered “Pension or superannuation or retirement or provident fund or plan” to Q2)
Defined benefit 99
Defined contribution 1
4. Please provide an overview of your asset mix as of 31 December 2007 (in %):
Listed equity (developed market, active) 0
Listed equity (developed market, passive) 0
Listed equity (emerging market, active) 54
Listed equity (emerging market, passive) 0
Fixed income - developed markets 0
Fixed income - emerging markets 30
Real estate or property 2
Private equity 1
Hedge fund 0
Infrastructure 11
Currency 0
Commodities 0
Cash 0
Other (Please specify): loans to participants 2
loans to participants
5. Please indicate what percentage of your assets are managed internally and what percentage are managed externally (in %):
 
Internal
External
Listed equity (developed market, active) 0 0
Listed equity (developed market, passive) 0 0
Listed equity (emerging market, active) 100 0
Listed equity (emerging market, passive) 0 0
Fixed income - developed markets 0 0
Fixed income - emerging markets 100 0
Real estate or property 100 0
Private equity 0 100
Hedge fund 0 0
Infrastructure 100 0
Currency 0 0
Commodities 0 0
Cash 0 0
Other (Please specify): loans to participants 100 0
loans to participants
Principle 1
7. Do you have a formal investment policy statement that makes specific reference to the integration of responsible investment (RI) or environmental, social and governance (ESG) issues within investment decision making and ownership practices? Yes, it is integrated into a broader investment policy
9. In what year were RI/ESG issues first formally addressed in a policy statement (integrated or independent)? 2005
10. Has your statement that makes specific reference to the integration of RI or ESG issues been disclosed publicly? Yes
11. Please indicate how this statement that makes specific reference to the integration of RI or ESG issues can be obtained (a URL would be sufficient): http:/www.previ.com.br/pçs/portal/docs/PAGE/PG_PREVI/INVESTIMENTOS/2004GOVERNANCACORPORATIVA/COD_GOVERN_PORT.pdf
12. For what percentage of your internal assets under management do you integrate RI/ESG issues into your internal investment decision-making processes? (in %)
Listed equity (emerging market, active) 30
Fixed income - emerging markets 0
Real estate or property 10
Infrastructure 30
loans to participants 0
13. To what extent have you integrated RI/ESG issues into your internal investment decision-making processes?
Listed equity (emerging market, active) To a moderate extent
Fixed income - emerging markets Not at all
Real estate or property To a small extent
Infrastructure To a moderate extent
loans to participants Not at all
14. For what percentage of your external assets under management are RI/ESG issues integrated into the investment decision-making processes of your external investment managers? (in %)
Private equity 80
15. To what extent have RI/ESG issues been integrated into the investment decision-making processes of your external investment managers?
Private equity To a large extent
16. What proportion of your assets involve screening out or excluding stocks or sectors based on ethical (rather than long-term financial) criteria? (in %) 100
17. Do you have any staff dedicated to RI/ESG issue analysis and/or implementation?
 
Dedicated
Combined full-time equivalents
Investment analyst 0 1
Research analyst 0 1
RI/ESG issue policy advisor 0 1
(proxy) Voting specialist 0 1
Engagement specialist 0 1
Portfolio manager 0 1
Other (Please specify): consultant 1 0
18. Which Board committee or other executive body has overall responsibility for RI/ESG issues? Executive Board
19. Do you assess the capabilities of internal investment staff to incorporate RI/ESG issues? Planning to in 2008
20. Do you assess the capabilities of external investment managers to incorporate RI/ESG issues? Planning to in 2008
21. Approximately what percentage of your internal non-ESG-specialist investment management staff received RI/ESG training in 2007? (in %) 30
22. What forms of RI/ESG training or awareness raising have been invested in, encouraged or provided for internal staff (investment and other)? Informal internal training,Conferences,Professional programs
23. Did you support the development of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research in 2007? Planning to in 2008
24. Please indicate how the results of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research development you supported can be obtained if they have been disclosed publicly (a URL would be sufficient): No Answer
25. Have you advocated/supported/ encouraged/participated in RI/ESG issue-related industry-wide training for investment professionals during 2007? Sponsored industry events,Advocated RI/ESG coverage in professional training programs (CFA, MBA, etc.),Spoke at or attended conferences,Had dialogue or exchanges with peers
26. What was your most significant achievement in 2007 in relation to your implementation of Principle 1? negative screen - armaments and tobacco
27. What was your biggest barrier in 2007 with relation to your implementation of Principle 1? RI/ESG market information availability
28. Please add any overall comments and clarifications related to Principle 1 here. no comments
Principle 2
29. To what extent did you employ the following approaches in your 2007 active ownership strategy for listed equities?
(Proxy) voting To a large extent
Direct engagement conducted privately To a large extent
Direct engagement conducted publicly To a moderate extent
Collaborative engagement To a moderate extent
Filing shareholder resolutions To a moderate extent
Co-filing shareholder resolutions Not applicable
Other (Please specify): No Answer
30. To what extent did you employ the following approaches in your 2007 active ownership strategy for all asset classes other than listed equity?
(Proxy) voting To a moderate extent
Direct engagement conducted privately Planning to in 2008
Direct engagement conducted publicly Planning to in 2008
Collaborative engagement Planning to in 2008
Other (Please specify): No Answer
31. Do you have a (proxy) voting policy? Yes - internal document
32. To what extent does your (proxy) voting policy direct action on ESG issues? For each issue, please indicate the extent of direction.
Environmental To a small extent
Social To a small extent
Governance To a large extent
33. Does your (proxy) voting policy apply to all voting regions (where possible)? Yes
34. Please indicate how your (proxy) voting policy can be obtained (a URL would be sufficient): It can be obtained at internal document - folio views
35. Do you ensure that voting is done in accordance with your (proxy) voting policy? Yes for all
36. What percentage of total votes cast were against management? (in %) 2
37. What percentage of shareholder resolutions relating to environmental, social or governance issues was supported? (in %)
Environmental 0
Social 30
Governance 70
39. How many shareholder resolutions related to RI/ESG issues did you participate in during 2007?
As lead filer 84
As co-filer 0
Planning to be lead filer in 2008 0
Planning to be co-filer in 2008 0
40. How were portfolio companies engaged with in 2007? Please check all that apply. Internal staff engaged portfolio companies directly,External investment managers engaged portfolio companies directly
42. Do you systematically ask your external investment managers to bring RI/ESG issue-related engagement opportunities to you? Planning to in 2008
43. How many portfolio companies did you engage directly/were engaged on your behalf on ESG issues in 2007?
 
Extensive engagement
Moderate engagement
Basic engagement
Environmental 0 0 100
Social 0 0 1
Governance 81 0 0
44. What RI/ESG-related issues were addressed in your shareowner engagement initiatives? Please check all that apply. Climate change,Environment,Governance,Human rights
45. How were RI/ESG issue-related engagement targets and topics identified? Please check all that apply. Client directive,Sector exposure,Risk profile,Ad hoc/reactive
46. Do you set RI/ESG issue-related engagement objectives and attempt to evaluate success? Planning to in 2008
47. Have you sought evidence relating to the effectiveness of your active ownership strategy? Please check all that apply. Governance practices changed,Improved disclosure
48. What was your most significant achievement in 2007 in relation to your implementation of Principle 2? (i) Effective performance in Governance, in the Opportunity case. (ii) Incentive to the companies integrated the Level 1 of governance of BOVESPA.
49. What was your biggest barrier in 2007 with relation to your implementation of Principle 2? Lack of transparency of the informations rendered by the companies.
50. Please add any overall comments and clarifications related to Principle 2 here. No comments.
Principle 3
51. Have you asked that investee companies (or other investment entities) produce standardized reporting on their RI/ESG issue policies, practices or performance (within annual financial reports or other formats)? To a small extent
52. What format of standardized reporting on RI/ESG issue policies, practices or performance have you requested? Integrated with regular financial reports,Global Reporting Initiative (GRI),Carbon Disclosure Project (CDP)
53. Have you provided feedback to investee companies (or other investment entities) on their reporting on RI/ESG issues? To a moderate extent
54. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues?
Adoption To a large extent
Adherence To a large extent
55. Which norms, standards, codes of conduct or international initiatives related to RI/ESG issues have you sought information about from companies, with regard to their adoption of/adherence to? UN Global Compact,Equator Principles,Other (please specify): 'ISE (BOVESPA) and ETHOS'
56. What was your most significant achievement in 2007 in relation to your implementation of Principle 3? Board Meeting 2007 - Lectures to incentivate the adherence to GRI and presentation of the companies RSA projects. The meeting program can be seen at http:/previ.com.br/investimentos/governançacorporativa/encontro_de_conselheiros 2007
57. What was your biggest barrier in 2007 with relation to your implementation of Principle 3? The disclosure of these actions in the companies sites. The informations are disclosured only in the anul financials reports
58. Please add any overall comments and clarifications related to Principle 3 here. The Previ RSA politcs goal is to incentivate the companies to disclosure their ESG actions, to be implemented in 2008.
Principle 4
59. Are you considering RI/ESG requirements when searching for and selecting the following?
External investment manager Yes
Investment consultant No
Proxy voting No
Engagement overlay No
Investment research No
Internal operations (for example, purchasing, travel, office space etc.) No
Other (Please specify): No
60. Have you linked the following to performance on RI/ESG issues?
Investment monitoring Yes
Incentive structure (internal investments) Not applicable
Incentive structure (external investments) Yes
Contractual relationships with external investment managers Yes
61. Are the default pension funds or retirement plans offered to your employees also signatories to the PRI? Yes
62. To what extent do you encourage your service providers to become PRI signatories? Planning to in 2008
64. To what extent do you encourage peer organisations to become PRI signatories? To a large extent
65. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers? To a moderate extent
67. Have you revisited any relationships with service providers in light of RI/ESG issue-related capabilities? No
68. Have you engaged in dialogue, lobbying or initiatives pertaining to government policy and/or industry regulations (for example, stock exchanges, accounting standards) related to RI/ESG issues in 2007? To a moderate extent
69. What was your most significant achievement in 2007 in relation to your implementation of Principle 4? PRI signing ceremony in BOVESPA, Sao Paolo on March 26th.
70. What was your biggest barrier in 2007 with relation to your implementation of Principle 4? no comments
71. Please add any overall comments and clarifications related to Principle 4 here. no comments
Principle 5
72. Did you use the PRI Engagement Clearinghouse in 2007? Used clearinghouse
73. Did your use of the clearinghouse result in subsequent action or collaboration with other signatories? Yes
74. Please elaborate on how the PRI Engagement Clearinghouse could be made more useful: PRI Engagement Clearinghouse is very useful for all signatories.
75. To what extent do you participate in the following RI/ESG issue-related collaborative engagement initiatives and/or industry associations? For those not listed, please use the "other" field: Carbon Disclosure Project,International Corporate Governance Network (ICGN),United Nations Environmental Program Finance Initiative (UNEP FI),Other (please specify): 'ABRAPP and Instituto ETHOS'
76. Please indicate the three RI/ESG issue-related collaborative engagement initiatives and/or industry associations that you participated in most extensively and indicate how you did so:
United Nations Environmental Program Finance Initiative (UNEP FI) PREVI is a PRI Executive BOard member
Carbon Disclosure Project Hermes Initiative
International Corporate Governance Network (ICGN) ICGN affiliated
77. What was your most significant achievement in 2007 in relation to your implementation of Principle 5? PRI Emerging Market Project engagement
78. What was your biggest barrier in 2007 with relation to your implementation of Principle 5? no comments
79. Please add any overall comments and clarifications related to Principle 5 here. no comments
Principle 6
80. Have you disclosed how RI/ESG issues are integrated into your investment processes? Planning to in 2008
81. Please indicated how this disclosure of how RI/ESG issues are integrated into your investment processes can be obtained (a URL would be sufficient): No Answer
82. To what extent do you disclose your annual (proxy) voting record? Disclose votes and guidance explaining votes
83. Please indicated how your (proxy) voting record can be obtained (a URL would be sufficient): www.previ.com.br
84. Do you systematically report (privately and/or publicly) on your RI/ESG issue-related engagement activities, results and progress? Planning to in 2008
85. Please indicate how your reporting on RI/ESG issue-related engagement activities, results and progress can be obtained (if it is publicly available, a URL would be sufficient): No Answer
86. Did you communicate on RI/ESG issues and the PRI to beneficiaries or plan participants in 2007? To a moderate extent
87. Please indicate how your communication on RI/ESG issues and the PRI to beneficiaries or plan participants can be obtained (if it is publicly available, a URL would be sufficient): www.previ.com.br, Annual Report and Revista PREVI (Magazine)
88. Are you undertaking any additional efforts to raise awareness of the PRI and RI/ESG issues amongst stakeholders? To a moderate extent
89. What evidence do you have of the impact on external investment manager practices? Please check those that apply. Investment decisions,Improved communications on ESG
90. Have you sought to determine what impact your overall RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behavior or performance? Planning to in 2008
91. Have you sought to determine what impact your RI/ESG issue-related approach has had on the performance of your portfolio? Planning to in 2008
92. Have you sought to determine what impact your RI/ESG issue-related efforts, requests and guidance have had on the consideration of RI/ESG issues by your external service providers excluding external investment managers (for example: research providers, consultants, etc.)? Planning to in 2008
93. Do you report on progress and/or achievements relating to the PRI or RI, and how would you like to publish your response to this assessment? Please automatically publish our responses to the reporting and assessment tool in full on the PRI website
94. What was your most significant achievement in 2007 in relation to your implementation of Principle 6? 2007 - Abrapp Annual Congress -Panel PREVI: "Pension Funds Investments and the Corporative Sustentability - Principles to Responsible Investiments"
95. What was your biggest barrier in 2007 with relation to your implementation of Principle 6? no comments
96. Please add any overall comments and clarifications related to Principle 6 here. no comments
Emerging Markets
97. To what extent have you actively thought about how to integrate RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments? To a moderate extent
98. Please describe your activities with regards to integrating RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments. Governance practices, engagement and ethical screens
99. To what extent do you believe the integration of ESG issues in emerging markets is as relevant as the integration of ESG issues in other markets? To the same extent
100. To what extent did you employ the following approaches in your 2007 active ownership strategy in emerging markets?
(Proxy) voting To a large extent
Direct engagement conducted privately To a large extent
Direct engagement conducted publicly To a moderate extent
Collaborative engagement To a moderate extent
Filing shareholder resolutions To a moderate extent
Co-filing shareholder resolutions Not Applicable
Other (Please specify): No Answer
101. To what extent have you developed a comprehensive RI/ESG engagement capability regarding business activities in emerging markets? To a large extent
102. Please list the three most often addressed RI/ESG-related issues in your shareholder engagement initiatives in emerging markets?
1. Installation of permanent Fiscal Council
2. Global Compact adhesion incentive
3. Proxy statement incentive
103. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues in emerging markets?
Adoption To a large extent
Adherence To a large extent
104. Do you take RI/ESG considerations into account when selecting and approving emerging markets external investment managers? To a moderate extent
105. Do your consultants factor RI/ESG issues into their short listing of emerging markets external investment managers? Planning to in 2008
106. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers investing in emerging markets? To a moderate extent
107. To what extent have you worked together with other investors to improve the effectiveness of implementing the PRI in emerging markets? To a moderate extent
108. Are you undertaking any additional efforts to raise awareness of RI/ESG issues in emerging markets? To a moderate extent
109. Have you sought to determine what impact your RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behaviour or performance in emerging markets? Planning to in 2008
110. Please add any overall comments and clarifications related to the PRI in emerging markets here. no comments
111. What is your top PRI-related goal/priority for emerging markets in 2008? Effective engagement with PRI Emerging Markets Project activities
Closing Comments
112. Why did your organisation join the PRI? We believe that RI/ESG issues, by themselves, tend to increase and sustain value to our assets portfolio in the long run. Beyond that, we believe that PRI will contribute to improve the quality of life of our beneficiaries in the future, by promoting social resp
113. Please describe the benefits you have enjoyed as a result of signing the PRI: Networking experience with peers/pension funds around the globe, improvement of knowledge about RI/ESG related subjects.
114. To what extent do you believe the PRI has succeeded in changing investor behaviour and/or raising awareness or capacity on RI/ESG issues? Do you have any examples you could share? To a moderate extent. We belive that PRI has already succeeded and also raising awareness on RI/ESG issues among investors, in changing their behaviour.Example: as a result the Iron and Steel Initiative, the Brazilian company Vale (CVRD) stopped selling ore to pig iron in Para state to producers that are not complying with the environmental and/or labor legislation in force in Brazil.
115. What are the top three activities the PRI Secretariat could undertake to enhance and encourage further implementation of the PRI by current and prospective signatories?
1. Development of tools for asset selection and allocation
2. Trainning
3. xxxxx
116. What are your top three PRI-related goals/priorities for 2008?
1. Increase PRI signature in Brazil, bringing asset managers to join the initiative
2. Increase awareness of ESG issues in investments decison making and asset ownership practices
3. Provide support/training programs for investiments professionals
117. Please rank the six principles from most difficult to implement to least difficult to implement:
Most difficult
1
Principle 3
2 Principle 2
3 Principle 1
4 Principle 4
5 Principle 5
Least difficult
6
Principle 6