Eastspring Investments: Responsible Investment Report 2022
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Exclusions Eastspring acknowledges that certain businesses and their activities are of detriment to the communities and wider society that they operate in. We deem investments into these companies as incompatible with the Group RI policy.
approach, we expanded the scope to include all our LBUs going forward, with the implementation of expanded scope set for the first half of 2023. Hard exclusions can serve as a tool in managing the long-term ESG risks of our exposures. Eastspring recognises that the policy should not be applied in a vacuum without consideration of the markets in which we operate. Therefore, we are continuously mindful of the need to implement our policy in a way that acknowledges the nature of the markets in which we operate.
certain percentage of their revenue from thermal coal. When considering a Group- wide exclusion, an assessment is made on the expected risk vs return impact of the investment portfolio. A proposal for an exclusion needs to be approved by the local business and follows our RI governance process. We believe that seeking change in corporate behaviour through engagement is more likely to have real world impacts. To that effect, we do consider exceptions on a case-by-case basis. Changes in Scope We first launched our Exclusions policy as a standalone policy for Eastspring Singapore in 2021, electing to only include comingled funds, such as Singapore unit trusts and SICAVs, that are directly-managed by Eastspring Singapore. As part of the natural evolution of our RI commitments and wider effort to harmonise our Eastspring Group Responsible Investment Policy and
Active ownership is preferable to exclusion
One of the four core tenets of our ESG philosophy acknowledges our preference and inclination towards active ownership, which includes engagement and proxy voting, over hard exclusions. In fact, we believe that hard exclusions from our investment universe should be utilised as a last resort, where ESG risks are insurmountable or where continued engagement is considered ineffective. Eastspring applies exclusion criteria for companies in select themes, including controversial weapons, tobacco, or companies that derive more than a
Controversial weapons
These are defined as companies with verified involvement in cluster munitions, anti-personnel mines, biological weapons, chemical weapons, and nuclear weapons outside of the UN Treaty on the Non- Proliferation of Nuclear Weapons.
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