Summary of responses to the PRI reporting and assessment tool 2008

Calvert Group, Ltd.

Organisational Overview
1. What were your organisation's total assets under management as of 31 December 2007 (in millions)?15665
Please select currencyUnited States dollar (USD)
1a. If 'Other' was selected, please specify the other currency hereNo Answer
4. Please provide an overview of your asset mix as of 31 December 2007 (in %):
Listed equity (developed market, active)34
Listed equity (developed market, passive)1
Listed equity (emerging market, active)0
Listed equity (emerging market, passive)0
Fixed income - developed markets56
Fixed income - emerging markets0
Real estate or property0
Private equity0
Hedge fund0
Infrastructure0
Currency0
Commodities0
Cash9
Other (Please specify): 0
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)0100
Listed equity (developed market, passive)0100
Listed equity (emerging market, active)00
Listed equity (emerging market, passive)00
Fixed income - developed markets1000
Fixed income - emerging markets00
Real estate or property00
Private equity00
Hedge fund00
Infrastructure00
Currency00
Commodities00
Cash1000
Other (Please specify):00
6. Please provide the following contact details for your main PRI contact:
URL for webpage outlining the specific services and products your organisation has to assist signatories in fulfilling their commitments to the Principleshttp://www.calvert.com/pdf/6132.pdf
Principle 1
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?Yes, it is integrated into a broader statement and there is an independent RI/ESG statement
9. In what year were RI/ESG issues first formally addressed in a policy statement (integrated or independent)?1982
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):www.calvert.com/sri.html
12. For what percentage of your internal assets under management do you integrate RI/ESG issues into your internal investment decision-making processes? (in %)
Fixed income - developed markets0
Cash0
13. To what extent have you integrated RI/ESG issues into your internal investment decision-making processes?
Fixed income - developed marketsNot 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)100
Listed equity (developed market, passive)100
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)To a large extent
Listed equity (developed market, passive)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 %)34
17. Do you have any staff dedicated to RI/ESG issue analysis and/or implementation?
 
Dedicated
Combined full-time equivalents
Investment analyst10.5
Research analyst155
RI/ESG issue policy advisor10
(proxy) Voting specialist00
Engagement specialist10
Portfolio manager00
Other (Please specify): Database Manager 10
18. Which Board committee or other executive body has overall responsibility for RI/ESG issues?Social Fund Board and Executive Committee
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?Yes
21. Approximately what percentage of your internal non-ESG-specialist investment management staff received RI/ESG training in 2007? (in %)10
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,Regular briefings on key issues
23. Did you support the development of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research in 2007?To a large 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):www.calvert.com/sri.html
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,Instructed at universities or colleges
26. What was your most significant achievement in 2007 in relation to your implementation of Principle 1?We drastically reworked our RI/ESG analysis database to make it easier to compare specific factors between companies, such as leadership on specific issues.
27. What was your biggest barrier in 2007 with relation to your implementation of Principle 1?Getting external managers to use information beyond simple pass/fail decisions.
28. Please add any overall comments and clarifications related to Principle 1 here.None.
Principle 2
29. To what extent did you employ the following approaches in your 2007 active ownership strategy for listed equities?
(Proxy) votingTo a large extent
Direct engagement conducted privatelyTo a large extent
Direct engagement conducted publiclyTo a small extent
Collaborative engagementTo a moderate extent
Filing shareholder resolutionsTo a large extent
Co-filing shareholder resolutionsTo a small extent
Other (Please specify):Not applicable
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 privatelyNot at all
Direct engagement conducted publiclyNot at all
Collaborative engagementNot at all
Other (Please specify):Not at all
31. Do you have a (proxy) voting policy?Yes - disclosed publicly
32. To what extent does your (proxy) voting policy direct action on ESG issues? For each issue, please indicate the extent of direction.
EnvironmentalTo a large extent
SocialTo a large extent
GovernanceTo 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):http://www.calvert.com/sri_2733.html
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 %)71
37. What percentage of shareholder resolutions relating to environmental, social or governance issues was supported? (in %)
Environmental100
Social80
Governance72
38. Do you conduct (proxy) voting on behalf of your clients?Yes - According to our own policy or client-specific policies
39. How many shareholder resolutions related to RI/ESG issues did you participate in during 2007?
As lead filer23
As co-filer11
Planning to be lead filer in 200826
Planning to be co-filer in 20083
40. How were portfolio companies engaged with in 2007? Please check all that apply.Internal staff engaged portfolio companies directly,Internal staff engaged portfolio companies collaboratively
41. Do you systematically bring RI/ESG issue-related engagement opportunities to your clients?To a small extent
42. Do you systematically ask your external investment managers to bring RI/ESG issue-related engagement opportunities to you?
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
Environmental150100
Social150500
Governance10080
44. What RI/ESG-related issues were addressed in your shareowner engagement initiatives? Please check all that apply.Activities in conflict zones,Benefits and compensation,Climate change,Environment,Governance,Human rights,Labour issues,Other (please specify): 'transparency and reporting on ESG'
45. How were RI/ESG issue-related engagement targets and topics identified? Please check all that apply.Sector exposure,Risk profile,Focus issue,Ad hoc/reactive,NGO or union campaign
46. Do you set RI/ESG issue-related engagement objectives and attempt to evaluate success?To a large extent
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,Improved disclosure,Collaborative work with a company on a specific ESG issue,Other evidence of improvement in investee company RI/ESG performance due to our activities,Shareholder resolutions withdrawn after successful negotiations with portfolio companies,Satisfactory percentages of (proxy) votes in favour of filed or co-filed shareowner resolutions
48. What was your most significant achievement in 2007 in relation to your implementation of Principle 2?Calvert withdrew climate change resolutions filed with two leading insurance companies: The Hartford Financial Services Group, Inc. and Prudential Financial Inc. The two companies agreed to improve their public reporting and disclosure regarding the potential financial risks they face from climate change and strategies for mitigating those risks. The Hartford and Prudential Financial responded positively to shareholder resolutions as part of Calvert and Ceres continuing work to encourage companies to address the climate change crisis. Both insurers addressed Calvert s proposal by agreeing to respond to a climate risk disclosure questionnaire sent to companies each year by the Carbon Disclosure Project (CDP). In addition, both companies have committed to disclose their assessment of the business impacts of climate change.
49. What was your biggest barrier in 2007 with relation to your implementation of Principle 2?Difficult to do advocacy with international companies.
50. Please add any overall comments and clarifications related to Principle 2 here.Enter text response here.
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 large extent
52. What format of standardized reporting on RI/ESG issue policies, practices or performance have you requested?Integrated with regular financial reports,Standalone corporate social responsibility or sustainability reporting,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 large 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?
AdoptionTo a large extent
AdherenceTo 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,Ceres Principles,Equator Principles,International Labour Organization standards,World Economic Forum Principles for Countering Bribery,Universal Declaration of Human Rights
56. What was your most significant achievement in 2007 in relation to your implementation of Principle 3?We have filed a number of shareholder resolutions on disclosure over the last two years. In addition, we have lead a new project on Emerging Markets Disclosure working with SIRAN, IWG, Ceres, ASRIA, and GRI.
57. What was your biggest barrier in 2007 with relation to your implementation of Principle 3?Promoting standardized reporting that can allow for real apples to apples comparisons. Voluntary reporting only goes part of the way.
58. Please add any overall comments and clarifications related to Principle 3 here.None.
Principle 4
59. Are you considering RI/ESG requirements when searching for and selecting the following?
External investment managerYes
Investment consultantNot applicable
Proxy votingYes
Engagement overlayNot applicable
Investment researchYes
Internal operations (for example, purchasing, travel, office space etc.)Yes
Other (Please specify):Not applicable
60. Have you linked the following to performance on RI/ESG issues?
Investment monitoringYes
Incentive structure (internal investments)No
Incentive structure (external investments)No
Contractual relationships with external investment managersNo
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
63. To what extent do you encourage your clients to become PRI signatories?Planning to in 2008
64. To what extent do you encourage peer organisations to become PRI signatories?To a small 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 large extent
66. Does your broker evaluation process include an ESG component or do you have a budget to pay cash for ESG broker research?No
67. Have you revisited any relationships with service providers in light of RI/ESG issue-related capabilities?Yes
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 large extent
69. What was your most significant achievement in 2007 in relation to your implementation of Principle 4?We examine all external managers to make sure they are able to integrate RI/ESG.
70. What was your biggest barrier in 2007 with relation to your implementation of Principle 4?We are unable to vote for brokerage service that supports ESG at this time until we have in-house equities.
71. Please add any overall comments and clarifications related to Principle 4 here.None.
Principle 5
72. Did you use the PRI Engagement Clearinghouse in 2007?Both used and posted to it
73. Did your use of the clearinghouse result in subsequent action or collaboration with other signatories?No
74. Please elaborate on how the PRI Engagement Clearinghouse could be made more useful:Clearinghouse works well. Needs to be a way to see which investors are working on which initiatives. So you literally sign-up and everyone can see.
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,Council of Institutional Investors (CII),CFA Institute Centre for Financial Market Integrity,Enhanced Analytics Initiative (associate member) (EAI),Extractive Industries Transparency Initiative (EITI),International Corporate Governance Network (ICGN),Investor Network on Climate Risk (INCR),Regional social investment organisation (for example SIF or UKSIF),Social Investment Research Analyst (SIRAN),United Nations Environmental Program Finance Initiative (UNEP FI),Other (please specify): ''
77. What was your most significant achievement in 2007 in relation to your implementation of Principle 5?Our work to promote Emerging Markets ESG Disclosure in collaboration with SIRAN, International Working Group, Ceres, ASRIA, and GRI.
78. What was your biggest barrier in 2007 with relation to your implementation of Principle 5?Difficult to coordinate advocacy efforts internationally.
79. Please add any overall comments and clarifications related to Principle 5 here.None.
Principle 6
80. Have you disclosed how RI/ESG issues are integrated into your investment processes?Yes - to clients or beneficiaries and the public
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):Calvert's website has extensive discussion of how we view ESG issues at http://www.calvert.com/sri.html
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):http://www.calvert.com/sri_7558.html
84. Do you systematically report (privately and/or publicly) on your RI/ESG issue-related engagement activities, results and progress?To a large extent
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):http://www.calvert.com/sri_648.html
86. Did you communicate on RI/ESG issues and the PRI to beneficiaries or plan participants in 2007?
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 large extent
89. What evidence do you have of the impact on external investment manager practices? Please check those that apply.Investment decisions
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?To a moderate extent
91. Have you sought to determine what impact your RI/ESG issue-related approach has had on the performance of your portfolio?To a small extent
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.)?Not at all
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?Our annual report on SRI, Mutual Funds that Make a Difference was expanded to include more detail and analyst perspectives in the past. http://www.calvert.com/pdf/6132.pdf
95. What was your biggest barrier in 2007 with relation to your implementation of Principle 6?None.
96. Please add any overall comments and clarifications related to Principle 6 here.None.
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 large 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.We have led the development of an Emerging Markets Diclosure Project working with SIRAN, IWG, Ceres, ASRIA, and GRI.
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) votingTo a large extent
Direct engagement conducted privatelyPlanning to in 2008
Direct engagement conducted publiclyPlanning to in 2008
Collaborative engagementPlanning to in 2008
Filing shareholder resolutionsNot at all
Co-filing shareholder resolutionsNot at all
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 small extent
102. Please list the three most often addressed RI/ESG-related issues in your shareholder engagement initiatives in emerging markets?
1.Sustainability disclosure.
2.None.
3.None.
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?
AdoptionPlanning to in 2008
AdherencePlanning to in 2008
104. Do you take RI/ESG considerations into account when selecting and approving emerging markets external investment managers?Not at all
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?To a large extent
108. Are you undertaking any additional efforts to raise awareness of RI/ESG issues in emerging markets?To a large 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?To a large extent
110. Please add any overall comments and clarifications related to the PRI in emerging markets here.
111. What is your top PRI-related goal/priority for emerging markets in 2008?Improving sustainability disclosure.
Closing Comments
112. Why did your organisation join the PRI?We participated in the development of the PRI, and did so for the same reason that we joined: we believe deeply that ESG issues affect financial performance as well as the sustainability of the planet.
113. Please describe the benefits you have enjoyed as a result of signing the PRI:We have benefited from our collaborations with other global investors on issues of common interest. We have also learned from the self-assessment process.
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?The PRI has certainly helped raise awareness about the importance of RI/ESG integration by demonstrating publicly that many major institutional investors are moving in this direction. The media and consultants are taking notice. And forcing asset managers to become even better at such integration.
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.Set minimum standards for signatories.
2.Provide special designations for asset managers who are doing a good job.
3.Conduct more trainings for smaller institutions trying to dip their toe in the water. Simplify language.
116. What are your top three PRI-related goals/priorities for 2008?
1.Improve ESG disclosure by emering markets companies.
2.Improve our in-house ESG integration capabilities.
3.Continue to network with other PRI signatories on important issues of mutual interest.
117. Please rank the six principles from most difficult to implement to least difficult to implement:
Most difficult
1
Principle 4
2Principle 6
3Principle 5
4Principle 3
5Principle 1
Least difficult
6
Principle 2