Eastspring Investments: Responsible Investment Report 2022
20
Company B
Company B is a port operating company. Eastspring Singapore spoke with representatives of the company to better understand their approach to handling material ESG risks, including climate adaptation and OHS. Going into the engagement, we observed that a third- party ESG rating agency had awarded the company a bottom-quartile rating and utilised this opportunity to advise the company on enhancing disclosures and remediating identified issues. We provided feedback that a driver of the bottom-quartile rating had to do with limited disclosure of quantifiable ESG targets and programs in areas considered to be material from an ESG perspective. We encouraged the company to take measured steps to ameliorate this issue by formalising remediation policies on impacted areas, setting quantitative OHS targets, and instituting a physical climate risk integration process. The company was receptive and revealed that they had already been conducting an Environmental Impact Assessment (“EIA”) before any potential modification to natural areas and that they will consider publication of these EIA reports, in order to reflect these processes accurately to third-party ESG rating agencies. When questioned about their readiness for physical climate risks adaptation, particularly on rising sea levels, a material issue to port operators, the company demonstrated awareness of the issue and had already taken steps towards adaptation through conducting an expert review and increasing the height of several flood gates. The company also disclosed that it is currently working on climate physical risk scenarios modeling. In light of this positive sharing, we encouraged them to disclose their plans publicly as this would add to improving their ESG rating. In parallel, we reached out to the third-party ESG rating agency to prompt a timely rating review. All things considered, we will continue to monitor the progress in addressing targeted issues and work in tandem with the company to improve disclosures to the market.
Climate adaptation
Occupational Health and Safety
Eastspring Singapore
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