Climate Change Data

Pzena Investment Management, LLC

Climate Impact & Sustainability Data (2021-07-14 to 2023-05-31, 2022)

Reporting Period: 2021-07-14 to 2023-05-31

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Principles for Responsible Investment (PRI)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Governance
  • Social

Environmental Achievements

  • Developed thematic ESG research to supplement company-specific ESG research.
  • Became a signatory to the Net Zero Asset Manager initiative (NZAMi) and launched a dedicated Global Value Climate (GVC) strategy.

Social Achievements

  • Expanded our offering of Article 8 UCITS funds.
  • Grew the ESG team to include a full-time resource focused on ESG reporting.

Governance Achievements

  • Published an inaugural 2022 Stewardship Report highlighting engagement and proxy voting.
  • Published proxy votes online for improved transparency.
  • Made enhancements to proxy data to provide clients with information on significant votes.
  • Evaluated and reported our ongoing alignment to the principles of the Japanese Stewardship Code.

Climate Goals & Targets

Long-term Goals:
  • Continuing to consider additional ways we could incorporate ESG into future product development.
Medium-term Goals:
  • Exploring the development of an in-house proprietary ESG data dashboard.
Short-term Goals:
  • Further enhancing external ESG reporting, including an inaugural Pzena Sustainability Report to be published at the end of 2023.
  • Initiating thematic ESG engagements related to emerging ESG issues e.g. water and biodiversity.
  • Evaluating how the ESG team can support and improve our proxy voting process and board engagement.

Environmental Challenges

  • Market expectations for ESG are always evolving.
  • Challenges in engaging with companies in some markets, particularly on governance matters.
  • Data limitations with available climate-related metrics, especially availability, consistency, and reliability.
Mitigation Strategies
  • Continuous improvement of ESG implementation.
  • Enhancements to stewardship activities through direct engagement and proxy voting, including a new research management system.
  • Further enhancing external ESG reporting, including an inaugural Pzena Sustainability Report.
  • Initiating thematic ESG engagements related to emerging ESG issues.
  • Evaluating how the ESG team can support and improve the proxy voting process and board engagement.
  • Exploring the development of an in-house proprietary ESG data dashboard.

Supply Chain Management

Responsible Procurement
  • Monitoring of supply chains for ESG risks (e.g., Hon Hai).

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity of hurricanes or frequency of wildfires
  • Disruption of a company’s suppliers or customer-base
Transition Risks
  • Stranding of non-useful assets
  • Levying of a price on carbon emissions
Opportunities
  • Technological innovation and new business growth opportunities across sectors

Reporting Standards

Frameworks Used: PRI

Awards & Recognition

  • Finalist spot in the ‘Excellence in ESG Research’ Category at the UK based ESG Investing Awards