Aviva Investors - Principles for Responsible Investment

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Governance, policy and strategy This section is focused on the governance, policies and strategies guiding your organisation's approach to responsible investment (RI). 'Policy' in this section may refer to one overall RI policy or multiple policies that address various elements of RI or ESG issues. Some questions in this section are scored, while other questions are not scored but do determine the applicability of subsequent questions. Please make sure you provide accurate answers. You will not be able to enter this section unless you have completed the "Organisational overview" section. You will not be able to continue the survey until you have finalised this section. However, if you wish to begin preparing your answers for the following sections, you may do so by reviewing the full list of questions and explanatory notes in the manual provided on the PRI extranet. This section will be scored separately from the six Principles. Q 11 Please provide a description of how your governance, policies and strategies address RI and ESG issues. Note that this text in addition to being part of the full survey will also be part of the Executive Summary of the survey. The Executive Summary is a separate document that will collate the text you provide for each of the introductory sections of the survey (GPS and the six Principles). As a founding signatory to the UN Principles for Responsible Investment (PRI), Aviva Investors has demonstrated its dedication to the worldwide implementation of environmental, social and corporate governance (ESG) principles. We have a dedicated SRI team, which provides awardwinning SRI investment expertise for our clients with SRI objectives. We also have a dedicated corporate governance team. There are 20 investment professionals in these teams, and the analysis of each of the teams is shared internally. In order to deliver the PRI within the entire Aviva Group, we have developed the following general approach to how we govern, manage and operationalise the principles: 1. Governance There is an Aviva Investors Executive Committee member responsible for Corporate Responsibility (CR) which includes responsibility for the application of the PRI. The Board of Aviva Investors and the Board of Aviva PLC use the results of this PRI assessment to help govern our delivery of responsible investment in general, as well as our adherence to the principles within the PRI in particular. These formal annual Board reviews are held in the fourth quarter. The Aviva Investors' Heads of Sustainability and Governance attend the full Board to present progress and future plans in addition to the Executive Committee member responsible for CR. 2. Policy The PRI itself is part of the policy framework of Aviva Investors. Our membership of the PRI is captured within the Aviva Group CR framework. Policy implementation reports are provided to the Group CR Committee and reviewed at the Aviva Investors CR Committee. Aviva Investors also publishes its own approach to ESG voting and integration within our public policy documentation. An SRI advisory committee, comprised of leading professionals in the area of sustainability, provide advice and guidance on the implementation of our policy. 3. Strategies Aviva believes that ESG factors have a material impact on the ability of many companies to generate longterm earnings. Consequently, we have developed a clear strategy for integration and engagement. Regarding integration, as the majority of a company's value is derived from its ability to generate longterm earnings, we believe that identifying and integrating ESG factors into valuation analysis is crucial. As part of our investment process we identify and integrate factors which impact longterm earnings, such as ESG issues, into our valuation analysis. Our research suggests that the way in which companies manage the extrafinancial aspects of their business provides a useful proxy to management quality and business sustainability, and has a material impact on shareholder value. Analysing ESG issues can therefore help us to differentiate between winners and losers from a range of ESG themes. Regarding engagement, the key ESG risks and opportunities identified within our investment analysis form the basis of our future engagement plans with specific companies. Where material issues within our holdings are identified, then a structured programme of engagement ensues. This dialogue is generally included within our routine company management meetings. Where companies are intransigent on material issues then we may escalate our engagement to include voting action at AGMs, divestment and/or selective public expressions of concern. We will lead or join a collaborative engagement initiative where we believe this will have a significant impact and generally support this with additional individual engagement. Copyright ©2011 PRI Association. All rights reserved. page 4 / 30
Q 12 Do you have a policy or a set of policies that make specific reference to responsible investment, and if so, do they cover environmental, social, and governance issues Please select "Yes" or "No": If "Yes", which issue(s) does it cover Yes Environmental Social Governance Q 13 For the following asset classes, to what extent has your policy or approach to responsible investment been incorporated into internal management processes (e.g. business planning, strategic planning, or similar) Extent that your approach has been incorporated into internal management processes Asset class Listed equity (developed markets) Listed equity (emerging markets) Fixed income sovereign and other noncorporate issuers Fixed income corporate issuers Listed real estate or property Nonlisted real estate or property Please select: "Large", "Moderate", "Small" or "Not at all" Large Moderate Moderate Moderate Large Large Q 14 Within your organisation: What roles are present Who has a clear responsibility related to responsible investment implementation and Are there incentives and/or training on RI/ESG issues Roles present in your organisation Responsibilities on RI/ESG Please check all that apply Incentives Training Please choose among "Yes, for all", "Yes, for some" or "No" Board of trustees or board of directors and their committees Yes Yes N/A Yes, for some Chief Executive Officer or Chief Investment Officer or equivalent Yes Yes No Yes, for some Other senior management Yes Yes No Yes, for some Portfolio managers Yes Yes Yes, for some Yes, for some Analysts Yes Yes Yes, for some Yes, for some Researchers Yes Yes Yes, for some Yes, for some RI or ESG specialist Yes Yes Yes, for all Yes, for all Other please specify: Advisory Committee Yes Yes No Yes, for all Copyright ©2011 PRI Association. All rights reserved. page 5 / 30
Page 1 and 2: An investor initiative in partnersh
Page 3: Q 9 Please provide the following in
Page 7 and 8: Q 17 Please select any of the follo
Page 9 and 10: Q 19 Please provide a description o
Page 11 and 12: Principle 2 We will be active ow
Page 13 and 14: Q 29 For listed equities, who makes
Page 15 and 16: Q 37 Do you have a written engageme
Page 17 and 18: Q 46 What percentage of engagements
Page 19 and 20: Q 50 Please describe your organisat
Page 21 and 22: Q 54 To what extent did you or your
Page 23 and 24: Principle 4 We will promote acce
Page 25 and 26: Q 64 Please add any overall comment
Page 27 and 28: Q 68 Did your organisation particip
Page 29 and 30: Q 73 Did you disclose your (proxy)

Aviva Investors - Principles for Responsible Investment

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