Summary of responses to the PRI reporting and assessment tool 2008

Insight Investment

Organisational Overview
1. What were your organisation's total assets under management as of 31 December 2007 (in millions)?109050
Please select currencyBritish pound (GBP)
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)15
Listed equity (developed market, passive)16.4
Listed equity (emerging market, active)0.1
Listed equity (emerging market, passive)0.2
Fixed income - developed markets54
Fixed income - emerging markets0.3
Real estate or property0
Private equity0
Hedge fund0
Infrastructure0
Currency0
Commodities0
Cash14
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)1000
Listed equity (developed market, passive)1000
Listed equity (emerging market, active)1000
Listed equity (emerging market, passive)1000
Fixed income - developed markets1000
Fixed income - emerging markets1000
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.insightinvestment.com/Documents/responsibility/Reports/Putting_Principles_into_Practice_FINAL.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
9. In what year were RI/ESG issues first formally addressed in a policy statement (integrated or independent)?2002
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.insightinvestment.com/responsibility/policy/policy.asp
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)100
Listed equity (developed market, passive)100
Listed equity (emerging market, active)100
Listed equity (emerging market, passive)100
Fixed income - developed markets100
Fixed income - emerging markets100
Cash0
13. To what extent have you integrated RI/ESG issues into your internal investment decision-making processes?
Listed equity (developed market, active)To a large extent
Listed equity (developed market, passive)To a large extent
Listed equity (emerging market, active)To a large extent
Listed equity (emerging market, passive)To a moderate extent
Fixed income - developed markets To a large extent
Fixed income - emerging markets 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 %)0.27
17. Do you have any staff dedicated to RI/ESG issue analysis and/or implementation?
 
Dedicated
Combined full-time equivalents
Investment analyst00
Research analyst00
RI/ESG issue policy advisor00
(proxy) Voting specialist00
Engagement specialist00
Portfolio manager00
Other (Please specify): All 5 of the IR team cover all aspects above. We do not split it out this way.05
18. Which Board committee or other executive body has overall responsibility for RI/ESG issues?The IR team reports to the Head of Equities. The CEO signs off and owns the IR / CG policy
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 Answer
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)?Regular briefings on key issues,Other (please specify): 'IR team attends fund management teams morning and team meetings; have ongoing ad-hoc discussions with analysts and fund managers about ESG 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):http://www.insightinvestment.com/responsibility/engagement/engagement.asp
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,Instructed at universities or colleges
26. What was your most significant achievement in 2007 in relation to your implementation of Principle 1? 
27. What was your biggest barrier in 2007 with relation to your implementation of Principle 1? 
28. Please add any overall comments and clarifications related to Principle 1 here. 
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 large extent
Collaborative engagementTo a large extent
Filing shareholder resolutionsNot at all
Co-filing shareholder resolutionsNot at all
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 privatelyNot at all
Direct engagement conducted publicly To a large extent
Collaborative engagement To a large extent
Other (Please specify):No Answer
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.
EnvironmentalNot at all
SocialNot at all
GovernanceTo a large extent
33. Does your (proxy) voting policy apply to all voting regions (where possible)?Some (please specify regional differences): 'UK, Europe'
34. Please indicate how your (proxy) voting policy can be obtained (a URL would be sufficient):http://www.insightinvestment.com/responsibility/policy/policy.asp
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 %)0.76
37. What percentage of shareholder resolutions relating to environmental, social or governance issues was supported? (in %)
Environmental0
Social0
Governance99.24
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 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 directly,Internal staff engaged portfolio companies collaboratively
41. Do you systematically bring RI/ESG issue-related engagement opportunities to your clients?Not required
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
Environmental142270
Social0470
Governance7620
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,Bribery/corruption,Climate change,Distribution of fair trade products,Environment,Governance,Health,Health and safety,Human rights,Labour issues,Nanotechnology / novel technology,Other (please specify): 'Supply chain management, sustainable homes'
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
48. What was your most significant achievement in 2007 in relation to your implementation of Principle 2? 
49. What was your biggest barrier in 2007 with relation to your implementation of Principle 2? 
50. Please add any overall comments and clarifications related to Principle 2 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,Carbon Disclosure Project (CDP),Other (please specify): 'Our own reporting guidelines linked to best practice frameworks we have developed, e.g. for sustainable homes, conumer health and obesity and climate change, some of which are seen as industry standards now.'
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?Equator Principles,Universal Declaration of Human Rights,Other (please specify): 'Our own guidelines, e.g. for sustainable homes, consumer health, climate change etc'
56. What was your most significant achievement in 2007 in relation to your implementation of Principle 3?We provided extensive feedback to 160 companies on the quality of their reporting.
57. What was your biggest barrier in 2007 with relation to your implementation of Principle 3?None.
58. Please add any overall comments and clarifications related to Principle 3 here.Nothing to add.
Principle 4
59. Are you considering RI/ESG requirements when searching for and selecting the following?
Investment consultantNot applicable
Proxy votingYes
Engagement overlayNot applicable
Investment researchYes
Internal operations (for example, purchasing, travel, office space etc.)Not applicable
Other (Please specify):No
60. Have you linked the following to performance on RI/ESG issues?
Investment monitoringNot applicable
Incentive structure (internal investments)No
Incentive structure (external investments)Not applicable
Contractual relationships with external investment managersNot applicable
61. Are the default pension funds or retirement plans offered to your employees also signatories to the PRI?No
62. To what extent do you encourage your service providers to become PRI signatories?Not applicable
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 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?No Answer
66. Does your broker evaluation process include an ESG component or do you have a budget to pay cash for ESG broker research?Yes
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 large extent
69. What was your most significant achievement in 2007 in relation to your implementation of Principle 4?We wrote to 24 other investment managers to encourage them to join the PRI.
70. What was your biggest barrier in 2007 with relation to your implementation of Principle 4?Nothing to add
71. Please add any overall comments and clarifications related to Principle 4 here.Nothing to add
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?Yes
74. Please elaborate on how the PRI Engagement Clearinghouse could be made more useful:It would be much easier if submissions indicated which countries or markets they apply to, have a date that it is relevant to / from, and the information is generally offered in a more categorised form, so that one doesn't have to trawl through the whole list to find something that might be relevant.
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,Extractive Industries Transparency Initiative (EITI),Institutional Investors Group on Climate Change (IIGCC),International Corporate Governance Network (ICGN),Regional social investment organisation (for example SIF or UKSIF),United Nations Environmental Program Finance Initiative (UNEP FI),Other (please specify): 'ABI, GRI'
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)In 2007, we sat on the working groups for human rights (and are co-chair), biodiversity and ecosystems, asset management and water.
Institutional Investors Group on Climate Change (IIGCC)Member of the Steering Committee; led drafting of IIGCC policy statements, spoke at external conferences for IIGCC.
Other (please specify)
Member of the Investment Committee and contribute to ABI's work on CG and climate change.
77. What was your most significant achievement in 2007 in relation to your implementation of Principle 5?  
78. What was your biggest barrier in 2007 with relation to your implementation of Principle 5? 
79. Please add any overall comments and clarifications related to Principle 5 here. 
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):We have a dedicated section of our website that explains our approach to integration in detail. http://www.insightinvestment.com/responsibility/integration/investment_integration.asp
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.insightinvestment.com/responsibility/reporting/reporting.asp
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):www.insightinvestment.com/responsibility/reporting/reporting.asp
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.No Answer
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 large extent
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 large 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,We publicly reported on our PRI or RI achievements in 2007 (outside of publishing part or all of this assessment)
94. What was your most significant achievement in 2007 in relation to your implementation of Principle 6? 
95. What was your biggest barrier in 2007 with relation to your implementation of Principle 6? 
96. Please add any overall comments and clarifications related to Principle 6 here. 
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.Where ES themes we research apply to these markets, they are fed into our standard investment analysis.
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) votingNot at all
Direct engagement conducted privatelyNot Applicable
Direct engagement conducted publiclyTo a small extent
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?Not at all
102. Please list the three most often addressed RI/ESG-related issues in your shareholder engagement initiatives in emerging markets?
1.Operations in difficult countries, e.g. Sudan, Zimbabwe, Kenya
2.Bribery and corruption
3.Environmental issues
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?
AdoptionTo a large extent
AdherenceTo a large extent
104. Do you take RI/ESG considerations into account when selecting and approving emerging markets external investment managers?No Answer
105. Do your consultants factor RI/ESG issues into their short listing of emerging markets external investment managers?No Answer
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?No Answer
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.Clearly, as investors, we can influence the practices of companies listed in developed markets which have operations in developing markets, which are also important.
111. What is your top PRI-related goal/priority for emerging markets in 2008?None. Not a priority given the tiny fraction of our investments in those markets.
Closing Comments
112. Why did your organisation join the PRI?We have a long-standing commitment to responsible investment. We believe strongly that the governance practices companies adopt and how they manage environmental and social issues can affect their financial performance. In our view, all asset owners and investment managers should join PRI to demonstrate that they take these factors into account.
113. Please describe the benefits you have enjoyed as a result of signing the PRI:Few direct benefits but we are pleased to support an organisation promoting RI around the world.
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 date we do not see any evidence of this. We do not see existing or prospective clients asking about for RI capablity as part of their investment management contracts or RFPs.
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.To set minimum performance standards that signatories have to achieve in order to continue to be a signatory, in other words, a mechanism to de-list those who do very little to implement the Principles.
2.To encourage many more major European pension funds to sign up to the PRI.
3.Encourage current signatories to publish much more about their engagement activities.
116. What are your top three PRI-related goals/priorities for 2008?
1.To encourage our clients to become PRI signatories.
2.To extend our voting and ESG engagement in Europe.
3.To encourage the PRI to create a full and proper mechanism for investment management representation in its governance structures.
117. Please rank the six principles from most difficult to implement to least difficult to implement:
Most difficult
1
Principle 1
2Principle 4
3Principle 5
4Principle 3
5Principle 6
Least difficult
6
Principle 2