Eastspring Investments: Responsible Investment Report 2022
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Our ESG strategic offerings Eastspring has strong local capabilities to deliver innovative solutions aligned with client needs. With presence in 11 markets across Asia, including joint ventures, Eastspring possesses the local knowledge and understanding of macro policies, sectors, as well as companies that are key in assessing material ESG risks in Asia. Our on-the-ground investment teams provide those local insights and work closely with clients to tailor innovative ESG-themed solutions to deliver sustainable returns to investors, the planet, and the next generation. Investment teams are empowered to integrate ESG considerations that are guided by the Group RI policy, consistent with their investment processes, and supported by our robust governance framework.
SINGAPORE
Japan Sustainable Value Fund Launched in 2022, the fund invests in the most attractive, mispriced opportunities to generate long- term capital appreciation whilst pursuing a disciplined approach to direct capital to sustainable outcomes for society. It also looks to have 75% or more of its assets invested in companies whose products and services do not hinder the advancement of the United Nations 17 Sustainable Development Goals (“SDGs”). A target has also been set for the fund’s WACI to be at least 20% lower than the reference benchmark whilst also having a higher ESG score than the reference benchmark. Global Emerging Markets Carbon Transition strategy Launched in 2022, this strategy delivers on a low carbon thematic focus, whilst remaining true to Eastspring’s Value investment style as applied to a Global Emerging Markets Universe. The strategy commits to at least 30% lower carbon emissions intensity versus the MSCI EM Index and, being benchmarked against the MSCI EM Climate Change Index, commits to a further reduction in intensity by 7% p.a. In addition to engagement on ESG, the strategy features stronger carbon engagement on climate change disclosure, emission reduction targets, transition capex, and strategy alignment with a company’s climate targets. ARCHIMED MED Platform II This fund is launched in 2023. For more information, please refer to page 54.
At the end of 2022, 87% of Eastspring Singapore’s SICAV range of funds were classified as Article 8 funds under the EU’s Sustainable Finance Disclosure Regulation (“SFDR”), the remaining 13% are classified as Article 6 funds. We have developed a suite of ESG-themed strategies focused on measurable social and environmental impact alongside long-term returns and we will continue to expand the development of ESG solutions with the evolving demand of our clients. Asia Sustainable Bond Fund Launched in 2019, the fund seeks to achieve positive total return whilst minimising downside risks with an ESG lens. It invests in bonds issued by Asian issuers who are aligned to ESG principles and uses an active investment approach with robust credit selection that incorporates ESG consideration. It includes Green, Social, and Sustainability (“GSS”) labelled bonds within its holdings. CICC China USD Sustainable Bond Fund Launched in 2022, the fund combines both China International Capital Corporation and Eastspring’s expertise in China credit and ESG investments to achieve positive total returns by investing in predominantly in US dollar denominated Chinese bonds which are aligned to ESG principles. It includes GSS labelled bonds within its holdings.
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