Summary of responses to the PRI reporting and assessment tool 2008

VALIA - Fundação Vale do Rio Doce de Seguridade Social

Organisational Overview
1. What were your organisation's total assets under management as of 31 December 2007 (in millions)?10002
Please select currencyBrazilian real (BRL)
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 benefit100
Defined contribution0
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)21
Listed equity (emerging market, passive)6
Fixed income - developed markets0
Fixed income - emerging markets30
Real estate or property3
Private equity1
Hedge fund35
Infrastructure0
Currency0
Commodities0
Cash0
Other (Please specify): Loans 4
Loans
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)00
Listed equity (developed market, passive)00
Listed equity (emerging market, active)97.982.02
Listed equity (emerging market, passive)1000
Fixed income - developed markets00
Fixed income - emerging markets58.241.8
Real estate or property1000
Private equity0100
Hedge fund1000
Infrastructure00
Currency00
Commodities00
Cash00
Other (Please specify): Loans 1000
Loans
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
8. Do you have a 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?
9. In what year were RI/ESG issues first formally addressed in a policy statement (integrated or independent)?2007
10. Has your statement that makes specific reference to the integration of RI or ESG issues been disclosed publicly?No
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):We are planning to exposure (disclouse) the metrics this year for all the signatories
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 (developed market, active)
Listed equity (developed market, passive)
Listed equity (emerging market, active)0
Listed equity (emerging market, passive)0
Fixed income - developed markets
Fixed income - emerging markets100
Real estate or property50
Private equity
Hedge fund0
Infrastructure
Currency
Commodities
Cash
{inst1}0
13. To what extent have you integrated RI/ESG issues into your internal investment decision-making processes?
Listed equity (developed market, active)No Answer
Listed equity (developed market, passive)No Answer
Listed equity (emerging market, active)Not at all
Listed equity (emerging market, passive)Not at all
Fixed income - developed marketsNo Answer
Fixed income - emerging marketsTo a moderate extent
Real estate or propertyTo a small extent
Private equityNo Answer
Hedge fundNot at all
InfrastructureNo Answer
CurrencyNo Answer
CommoditiesNo Answer
CashNo Answer
{inst1}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 %)
Listed equity (developed market, active)
Listed equity (developed market, passive)
Listed equity (emerging market, active)0
Listed equity (emerging market, passive)
Fixed income - developed markets
Fixed income - emerging markets0
Real estate or property
Private equity0
Hedge fund
Infrastructure
Currency
Commodities
Cash
{inst}
15. To what extent have RI/ESG issues been integrated into the investment decision-making processes of your external investment managers?
Listed equity (developed market, active)No Answer
Listed equity (developed market, passive)No Answer
Listed equity (emerging market, active)Not at all
Listed equity (emerging market, passive)No Answer
Fixed income - developed marketsNo Answer
Fixed income - emerging marketsNot at all
Real estate or propertyNo Answer
Private equityNot at all
Hedge fundNo Answer
InfrastructureNo Answer
CurrencyNo Answer
CommoditiesNo Answer
CashNo Answer
{inst}No Answer
16. What proportion of your assets involve screening out or excluding stocks or sectors based on ethical (rather than long-term financial) criteria? (in %)
17. Do you have any staff dedicated to RI/ESG issue analysis and/or implementation?
 
Dedicated
Combined full-time equivalents
Investment analyst05
Research analyst05
RI/ESG issue policy advisor00
(proxy) Voting specialist00
Engagement specialist00
Portfolio manager00
Other (Please specify):00
18. Which Board committee or other executive body has overall responsibility for RI/ESG issues?The Director board are responsible for the RI/ESG issues. Actually, for 2008 we are planning introduce the Investiment Committe into the decisions
19. Do you assess the capabilities of internal investment staff to incorporate RI/ESG issues?No
20. Do you assess the capabilities of external investment managers to incorporate RI/ESG issues?No
21. Approximately what percentage of your internal non-ESG-specialist investment management staff received RI/ESG training in 2007? (in %)100
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,Formal internal training,Conferences
23. Did you support the development of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research in 2007?To a small extent
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):We are planning to exposure (disclouse) the metrics this year for all the signatories
25. Have you advocated/supported/ encouraged/participated in RI/ESG issue-related industry-wide training for investment professionals during 2007?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?To include the ESG issues in the Investiment policy
27. What was your biggest barrier in 2007 with relation to your implementation of Principle 1?To provide Research about the topics
28. Please add any overall comments and clarifications related to Principle 1 here.Not at all
Principle 2
29. To what extent did you employ the following approaches in your 2007 active ownership strategy for listed equities?
(Proxy) votingNot applicable
Direct engagement conducted privatelyTo a moderate extent
Direct engagement conducted publiclyTo a small extent
Collaborative engagementTo a small extent
Filing shareholder resolutionsNot applicable
Co-filing shareholder resolutionsNot 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) votingNot at all
Direct engagement conducted privatelyTo a moderate extent
Direct engagement conducted publiclyTo a small extent
Collaborative engagementTo a small extent
Other (Please specify):No Answer
31. Do you have a (proxy) voting policy?No
32. To what extent does your (proxy) voting policy direct action on ESG issues? For each issue, please indicate the extent of direction.
EnvironmentalNo Answer
SocialNo Answer
GovernanceNo Answer
33. Does your (proxy) voting policy apply to all voting regions (where possible)?No Answer
34. Please indicate how your (proxy) voting policy can be obtained (a URL would be sufficient):
35. Do you ensure that voting is done in accordance with your (proxy) voting policy?No Answer
36. What percentage of total votes cast were against management? (in %)
37. What percentage of shareholder resolutions relating to environmental, social or governance issues was supported? (in %)
Environmental
Social
Governance
38. Do you conduct (proxy) voting on behalf of your clients?
39. How many shareholder resolutions related to RI/ESG issues did you participate in during 2007?
As lead filer
As co-filer
Planning to be lead filer in 2008
Planning to be co-filer in 2008
40. How were portfolio companies engaged with in 2007? Please check all that apply.Internal staff engaged portfolio companies collaboratively,External investment managers engaged portfolio companies collaboratively
41. Do you systematically bring RI/ESG issue-related engagement opportunities to your clients?
42. Do you systematically ask your external investment managers to bring RI/ESG issue-related engagement opportunities to you?To a small extent
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
Environmental000
Social000
Governance000
44. What RI/ESG-related issues were addressed in your shareowner engagement initiatives? Please check all that apply.Environment,Governance
45. How were RI/ESG issue-related engagement targets and topics identified? Please check all that apply.Risk profile
46. Do you set RI/ESG issue-related engagement objectives and attempt to evaluate success?Not at all
47. Have you sought evidence relating to the effectiveness of your active ownership strategy? Please check all that apply.Governance practices changed,(Written) commitment to improve a particular ESG issue
48. What was your most significant achievement in 2007 in relation to your implementation of Principle 2?The ESG issues were included in the Decisions Process
49. What was your biggest barrier in 2007 with relation to your implementation of Principle 2?To scrutinize the external managers decisions
50. Please add any overall comments and clarifications related to Principle 2 here.not at all
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
53. Have you provided feedback to investee companies (or other investment entities) on their reporting on RI/ESG issues?Not at all
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?
AdoptionNot at all
AdherenceNot at all
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?No Answer
56. What was your most significant achievement in 2007 in relation to your implementation of Principle 3?To require companies to provide information about RI/ESG issues, with financial reports
57. What was your biggest barrier in 2007 with relation to your implementation of Principle 3?To seek information from companies with information about adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues.
58. Please add any overall comments and clarifications related to Principle 3 here.not at all
Principle 4
59. Are you considering RI/ESG requirements when searching for and selecting the following?
External investment managerYes
Investment consultantNo
Proxy votingNot applicable
Engagement overlayNo
Investment researchNo
Internal operations (for example, purchasing, travel, office space etc.)No
Other (Please specify):Not applicable
60. Have you linked the following to performance on RI/ESG issues?
Investment monitoringYes
Incentive structure (internal investments)Yes
Incentive structure (external investments)Yes
Contractual relationships with external investment managersYes
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?Not at all
63. To what extent do you encourage your clients to become PRI signatories?
64. To what extent do you encourage peer organisations to become PRI signatories?To a moderate 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
66. Does your broker evaluation process include an ESG component or do you have a budget to pay cash for ESG broker research?
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?Not at all
69. What was your most significant achievement in 2007 in relation to your implementation of Principle 4?To encourage peer organisations to become PRI signatories
70. What was your biggest barrier in 2007 with relation to your implementation of Principle 4?To encourage the service providers to become PRI signatories
71. Please add any overall comments and clarifications related to Principle 4 here.not at all
Principle 5
72. Did you use the PRI Engagement Clearinghouse in 2007?No
73. Did your use of the clearinghouse result in subsequent action or collaboration with other signatories?No Answer
74. Please elaborate on how the PRI Engagement Clearinghouse could be made more useful:Sending reports to the PRI 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:No Answer
77. What was your most significant achievement in 2007 in relation to your implementation of Principle 5?To provide information to the peers about the PRI issues
78. What was your biggest barrier in 2007 with relation to your implementation of Principle 5?To participate in collaborative engagement initiatives
79. Please add any overall comments and clarifications related to Principle 5 here.not at all
Principle 6
80. Have you disclosed how RI/ESG issues are integrated into your investment processes?No
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):
82. To what extent do you disclose your annual (proxy) voting record?Not at all
83. Please indicated how your (proxy) voting record can be obtained (a URL would be sufficient):
84. Do you systematically report (privately and/or publicly) on your RI/ESG issue-related engagement activities, results and progress?Not at all
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):
86. Did you communicate on RI/ESG issues and the PRI to beneficiaries or plan participants in 2007?Not at all
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):
88. Are you undertaking any additional efforts to raise awareness of the PRI and RI/ESG issues amongst stakeholders?To a small extent
89. What evidence do you have of the impact on external investment manager practices? Please check those that apply.Investment policy
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?Not at all
91. Have you sought to determine what impact your RI/ESG issue-related approach has had on the performance of your portfolio?Not at all
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.)?To a small extent
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?Show the importance about PRI issues among the Peers Companies
95. What was your biggest barrier in 2007 with relation to your implementation of Principle 6?To find out a way do disclouse the metrics that was developed internal.
96. Please add any overall comments and clarifications related to Principle 6 here.not at all
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?Not at all
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.
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 a greater extent
100. To what extent did you employ the following approaches in your 2007 active ownership strategy in emerging markets?
(Proxy) votingNot Applicable
Direct engagement conducted privatelyTo a moderate extent
Direct engagement conducted publiclyTo a small extent
Collaborative engagementTo a small extent
Filing shareholder resolutionsNot Applicable
Co-filing shareholder resolutionsNot 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?Not Applicable
102. Please list the three most often addressed RI/ESG-related issues in your shareholder engagement initiatives in emerging markets?
1.
2.
3.
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?
AdoptionNot at all
AdherenceNot at all
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?Not at all
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?Not at all
107. To what extent have you worked together with other investors to improve the effectiveness of implementing the PRI in emerging markets?Not at all
108. Are you undertaking any additional efforts to raise awareness of RI/ESG issues in emerging markets?Not at all
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?Not at all
110. Please add any overall comments and clarifications related to the PRI in emerging markets here.not at all
111. What is your top PRI-related goal/priority for emerging markets in 2008?To show evidences that we have improved integration of RI/ESG issues by external investment managers, investing in emerging markets
Closing Comments
112. Why did your organisation join the PRI?To improve and have more security in our Investment process.
113. Please describe the benefits you have enjoyed as a result of signing the PRI:All the decision inside de company has been taken with more security.
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?We think we are still starting the process in the company. We believe is too soon to say that VALIA has succeeded.
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.Show the importance of the PRI
2.Use the "press" around the globe
3.Provide reports with the companies that are already signatories
116. What are your top three PRI-related goals/priorities for 2008?
1.Develop new metrics
2.Disclosure the results
3.Help the UN find new more signatories
117. Please rank the six principles from most difficult to implement to least difficult to implement:
Most difficult
1
Principle 6
2Principle 5
3Principle 4
4Principle 3
5Principle 2
Least difficult
6
Principle 1