The Calvert Principles For Responsible Investment

What Is The Pris Mission

We believe that an economically efficient, sustainable global financial system is a necessity for long-term value creation. Such a system will reward long-term, responsible investment and benefit the environment and society as a whole.

The PRI will work to achieve this sustainable global financial system by encouraging adoption of the Principles and collaboration on their implementation by fostering good governance, integrity and accountability and by addressing obstacles to a sustainable financial system that lie within market practices, structures and regulation.

Asset Manager Of The Year

In the past year, Calvert Research and Management’s impact engagement efforts have involved work focusing on diversity, climate change and protecting employees in at-risk industries in the wake of the Covid-19 pandemic.

Emily Chew, executive vice president and chief responsible investment officer at Calvert and winner of this year’s Personality of the year in the 2021 Impact Awards, said: “Several years ago we adopted the Calvert principles for responsible investment which define a baseline standard for the companies we invest in and which we consider to be sustainably managed companies.

“These are companies that have longevity over the medium- to long-term and remain competitive over that time, but also which have superior management over the environmental and social risks to their business model. We see that as a follow-on there is generally superior management of their potential negative impacts on society as well.

“That framework has provided a very clear direction for us in terms of how we define our funds.”

Chew highlighted an overall trend towards diversity and inclusion in the impact investing sector, and how Calvert also focussed on promoting this through its investments. She added: “As a result of our campaign, at least 75% of all companies in the top 100 publicly traded companies had publicly disclosed their diversity data metrics or they’ve committed to doing so.”

Calvert has $36 billion in assets under management, as of 30 June, across 11 funds.

The Us Sif Esg Indexes And Responsible Investing

The debate over active vs. passive investing continues as Responsible Investing gains in popularity.

The US SIF Foundation this week released its latest report, “The Rise of ESG in Passive Investments,” which explores the growth of passive environmental, social and governance investing and the debate on the effectiveness of passive versus active ESG mutual funds. Calvert Research and Management was among the asset managers that contributed to the report, which also drew on publicly available data and insights from the US SIF Foundation research advisory committee.

The vast majority of sustainably invested assets remain in actively managed ESG funds, but net flows into passively managed ESG funds have outpaced net flows into their actively managed counterparts in four of the past five years, according to Morningstar data. This continued early in 2020 while the S& P 500 dropped by 20 percent in Q1, passively managed ESG funds within the US equity segment saw inflows of $4.8 billion.1

That said, ESG indexes receive some criticism, in part because some strategies may lead to over concentrations of certain types of companies, and some passive managers lack the resources or incentives to engage with the companies held in their funds. Calvert’s Responsible Index series does not suffer from these issues, thanks to our rigorous research and engagement processes.

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Sustainable Investment Separate Accounts Chart

About This Strategy –

Assets Under Management :$508.15M

Required Minimum:50,000,000

Benchmark used:Calvert U.S. Large Cap Core Responsible Index

Strategy type:Equity Large Cap

Strategy description:Calvert is a responsible investor. We define Responsible Investing as an investment process that integrates traditional financial analysis with non-financial Environmental, Social and Governance factors seeking to enhance long-term returns and reduce risk in investment portfolios. As an ESG leader for over 30 years, we believe we have a unique ability to analyze and quantify the impact of ESG factors to the relative valuation of securities. Stewardship on behalf of our clients also includes active engagement with companies held in our portfolios.The Calvert Responsible Index Series seeks to deliver returns that are highly correlated with the broader equity market while applying Calverts proprietary Principles of Responsible Investing to companies held in the index. The Calvert Responsible Index Series expands on the Calvert Social Index, launched in June 2000, to provide additional low cost passive solutions.

Strategy web link:External Link

About The Company –

Institution Name:Calvert Research and Management

Research conducted: Internally

Researcher name: We have a team of 14 individuals which is comprised of 11 in-house analysts.

Contact info:4550 Montgomery Ave., Ste. 1000NBethesda, MD 20814Web:

Specific Screening Information by Category –

How Did The Pri Start

In early 2005, the then United Nations Secretary-General Kofi Annan invited a group of the worlds largest institutional investors to join a process to develop the Principles for Responsible Investment. A 20-person investor group drawn from institutions in 12 countries was supported by a 70-person group of experts from the investment industry, intergovernmental organisations and civil society.

The Principles were launched in April 2006 at the New York Stock Exchange. Since then the number of signatories has grown from 100 to over 4,000.

The PRI has grown consistently since it began in 2006. For a list of public reporters, total reported AUM per asset class and AUM covered by RI activities please see our signatory information snapshot.

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Contemporary Results Optimistic Future

The operation of the Responsible Investing system was on display earlier this year and gives insight into what the future holds.

In May, shareholders of Exxon Mobil voted by a 62% majority against the management of the company to support a climate change proposal that asks for Exxon to provide robust disclosure of the risks it faces related to climate change. Occidental Petroleums shareholders approved a similar proposal earlier that month. On June 1, United States President Donald Trump announced his intention to withdraw the U.S. from the Paris Climate Accord and by the following day dozens of CEOs of U.S.-based companies from General Electric to Apple Computer had stated their intentions to maintain their commitments to reducing their carbon footprints and meeting the commitments implied by the Paris Accord.

This was another illustration that the role of the corporation in society is extremely powerful and important in shaping our societal and environmental future, essentially the quality of life for ourselves and future generations. The movement that you helped start now matters to the majority of investors and is robust enough to act as a check and balance on the most powerful institutions in the world. Actions taken by investors and corporations in these days of uncertain government support for ESG issues that we hold dear are positive signs that we will continue to be able to drive positive change in the future.

An Approach Based On Materiality

To assess how well a company is positioned to respond to various Environmental, Social and Governance challenges or capitalize on opportunities, our team draws on expertise in specific economic sectors and data from diverse sources to determine which specific factors may drive corporate performance in any given industry.

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How We Approach Editorial Content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.

Influence That Makes An Impact

A critical element of our approach is actively engaging with companies and broader investor coalitions and industry groups to drive greater accountability and action. By helping companies understand the potential financial benefits of responsible practices, we can help affect meaningful change.

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How Is The Pri Funded

The PRI is funded primarily via an annual membership fee payable by all signatories. Additional funding comes from grants from governments, foundations and other international organisations. Corporate sponsorship and in-kind support is sought for standalone events and projects such as the annual PRI in Person conference and major publications/projects.

The PRIs full financial details are available in the Annual Report.

Vanguard Ftse Social Index

Tracks index of stocks screened for certain social, human rights, and environmental criteria.

TIAA-CREF Social Choice Equity Fund

Seeks to replicate performance of Russell 3000 index, sans companies that don’t meet its ESG standards.

iShares MSCI KLD 400 Social ETF

Tracks index of companies with superior environmental, social and governance ratings.

for a free account to access WIN member benefits. Visit How To & Insights for more practical knowledge.

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What Are The Six Principles For Responsible Investment

The six Principles for Responsible Investment offer a menu of possible actions for incorporating ESG issues into investment practice.

The Principles were developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system. They have attracted a global signatory base representing a majority of the worlds professionally managed investments.

• Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
• Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
• Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
• Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
• Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
• Principle 6: We will each report on our activities and progress towards implementing the Principles.

Calvert Funds Environmental Sustainability And Resource Efficiency

• Reduce the negative impact of operations and practices on the environment
• Manage water scarcity and ensure efficient and equitable access to clean sources
• Mitigate impact on all types of natural capital
• Diminish climate-related risks and reduce carbon emissions
• Drive sustainability innovation and resource efficiency through business operations or other activities, products and services

Equitable Societies and Respect for Human Rights

Respect consumers by marketing products and services in a fair and ethical manner, maintaining integrity in customer relations and ensuring the security of sensitive consumer data

Respect human rights, respect culture and tradition in local communities and economies and respect Indigenous Peoples Rights

Promote diversity and gender equity across workplaces, marketplaces and communities

Demonstrate a commitment to employees by promoting development, communication, appropriate economic opportunity and decent workplace standards

Respect the health and well-being of consumers and other users of products and services by promoting product safety

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In-depth sustainable investment management analysis, research, opinions and sustainable fund ratings

Accountable Governance and Transparency

Provide responsible stewardship of capital in the best interests of shareholders and debtholders

Lift ethical standards in all operations, including in dealings with customers, regulators and business partners

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A More Robust Information System

A key piece of this effort is the information system being built to support the four pillars, which, again, is being built by you, the people, and not the United States government or Wall Street. The system has two big pieces: the structural information about corporations policies, procedures and ESG performance goals, and the emerging and powerful set of information about what is happening throughout the world day-to-day in terms of corporate behavior. The first part of the system is what companies are saying about themselves, the second part of the system is new and emerging it is what you and hundreds of millions of others are observing and reporting about corporate behavior.

The Sustainability Accounting Standards Board is a nonprofit started by an individual with tremendous vision and drive. This is the place to look to understand the current and future state of corporate sustainability disclosure, the information we are all asking companies to provide so we can further our in-depth research. Ultimately, all companies will provide relevant information. The Exxon Mobil vote should be the notification to every company that the majority of investors will take action if management does not move expeditiously to provide the disclosure. Calvert is pleased to have been a founding member of the SASB Investor Advisory Group, along with a dozen other large investors representing over $20 trillion in invested assets.

Un Environment Programme Finance Initiative

UNEP FI is a unique partnership between the United Nations Environment Programme and the global financial sector. UNEP FI works closely with over 200 financial institutions that are signatories to the UNEP FI Statement on Sustainable Development, and a range of partner organisations, to develop and promote linkages between sustainability and financial performance.

Through peer-to-peer networks, research and training, UNEP FI carries out its mission to identify, promote, and realise the adoption of best environmental and sustainability practice at all levels of financial institution operations.

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How We Use Your Personal Data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

• Verify your identity, personalize the content you receive, or create and administer your account.
• Provide specific products and services to you, such as portfolio management or data aggregation.
• Develop and improve features of our offerings.

To learn more about how we handle and protect your data, visit our privacy center.

Active Work On A Passive Index

While an “index” is passively implemented, there’s a tremendous amount of active work that Calvert does to identify the companies we include in our Responsible Research Index series. A parent index provides the initial investment universe of constituent companies, at which point our research process takes over to determine which companies meet the Calvert Principles and merit inclusion in our index series. This is something we have a lot of experience with – Calvert has offered a suite of proprietary research indexes for years, with the flagship CALCOR research index incepted over 20 years ago. By identifying companies adequately managing their material ESG risks and opportunities, we build our indexes with the potential to meet or beat the performance of common broad-market benchmarks. We maintain our indexes over time with annual reconstitutions and rebalancing.

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The Principles For Responsible Investment

I Nomura Asset Management Is A Signatory To The Un Pri

The United Nations-backed Principles for Responsible Investment Initiative was launched in 2006 by former UN Secretary General Kofi Annan. This initiative comprises the six principles listed below. These principles provide a framework to incorporate environmental, social and corporate governance issues into mainstream investment decision-making. By applying these principles, institutional investors are encouraged to better align their investment activities with broader objectives of society.Nomura Asset Management Co., Ltd., including its international subsidiary companies, has agreed to the basic philosophy behind the United Nations-backed Principles for Responsible Investment and became a signatory to these principles on 1st March 2011.

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Responsible Investing Principles Pillars And Progress

August 3, 2017 By 3BLmedia

Guest blog by John Streur, Calvert

The responsible investing movement that we have started and shaped has reached the end of the beginning, with a broad and strong foundation that will evolve to provide the superstructure of our societys continuing struggle to address and solve its greatest challenges. Our efforts are working, and we are being joined in our mission by more investors worldwide every day.

The United Nations Principles for Responsible Investment of which Calvert was a founder now counts 1,700 large investors and more than $70 trillion in assets. This movement, unique because it was begun by investors, not Wall Street, is born from innovators, enthusiastic about the ability to create positive change and unwilling to wait for government officials or corporate leaders to set the pace.

The future of the movement will be guided by all of us who want a healthy environment, a just and inclusive society, and hundreds of other common-sense improvements to make the world a better place while producing competitive investment results. It is a privilege for me as CEO of Calvert Research and Management to write about the future of a movement that rightly belongs to you, the people.

The Role of Responsible Investing

In short, RI is the best way to influence the markets by bringing these forces together. What do we all have in common, and what does the future hold for our work?

Principles and Pillars

Contemporary Results, Optimistic Future

Calvert Principles For Sustainable Investing

Calvert Research and Management seeks to invest in issuers that provide positive leadership in the areas of their operations and overall activities that are material to improving societal outcomes, including those that will affect future generations.

Calvert seeks to invest in issuers that balance the needs of financial and nonfinancial stakeholders and demonstrate a commitment to the global commons, as well as to the rights of individuals and communities.

The Calvert Principles for Responsible Investment provide a framework for Calverts evaluation of investments and guide Calverts stewardship on behalf of clients through active engagement with issuers. The Calvert Principles seek to identify companies and other issuers that operate in a manner that is consistent with or promote:

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