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RPIA Investment Integration Overview
Our Engagements
Below are some highlights of key engagements we completed in 2023:
Big Tobacco Company Q2 2023
Business Development Company Q1 2023
Sector: Financials Geography: USA Factor: Governance
Sector: Consumer Geography: UK (Europe) Factor: Environment
Engaged with the management team on the issuer’s reporting and product governance relating to disclosure of ESG risks and exposures held by entities lower in the issuer’s legal structure, the robustness of their sustainability reporting, and alignment with regulatory and voluntary sustainability frameworks. Provided recommendations regarding clarity on the measurement of its climate impact, creating an ESG Governance Framework, and expanding commitments to the social pillar.
Engaged with the company’s treasury team to discuss its high-level ESG strategy, including financial impacts and key focus areas such as harm reduction, emission controls, and human rights. While the issuer has been affected by exclusionary mandates, we see potential for a long-term transformation story as this industry shifts away from cigarettes. We continue to identify and address critical issues to better understand the relative opportunity that may be missed by implicit exclusion.
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Read the full report
German Automaker Q4 2023
Large Canadian Bank Q3 2023
Sector: Financials Geography: Canada; USA Factor: Governance
Sector: Consumer Geography: Germany (Europe) Factor: Governance, Social
Engaged with the management team to discuss the bank’s U.S. AML compliance program, operational risks, and growth plans following the mutually agreed termination of their merger. Following our engagement and assessment of ESG and fundamental risk factors, we did not change our position in the issuer as the matter was not deemed material enough to change our view on the issuer as a whole.
Following allegations of forced labour, the company commissioned an independent audit that confirmed no indication of forced labour. However, after several senior staff at the auditor distanced themselves from the audit, we engaged with the company to determine the validity of the audit. During our engagement, the company confirmed that MSCI was pleased with the auditing process and that all required materials were included. This increased our confidence in the company’s credit profile and allowed us to continue holding the company’s bonds and invest in new bonds issued by the company.
Read the full report
Read the full report
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