there are three-part each part， Don't need to write too much on each part. part 1 follow the instruction, part 2 and 3 just one paragraph of each question then is fine.
There are three part need to be done, and they are all separate. 1. Identify an industry of interest to your fund and find a CFRA Industry Surveys report (see A12 in the Article List for the source). Read Executive Summary and Industry Snapshot · Key Industry Drivers · Industry Trends · Porter’s Five Forces · How the Industry Operates · How to Analyze a Company in this Industry · You only need to bullet list the three points and follow with a very brief explanation under each point. 2. See Bell industry-report · What is the company’s overall ESG rating and what does it mean relative to its industry? Any specific downside? (ESG Ratings Report) · Are there any ESG controversies and if yes, are they significant enough that investors should be made aware of them? (ESG Controversies Report) 3. Study the Alberta Heritage Fund, including investment policy, strategy, and performance. Here is a news article FYI. https://www.cbc.ca/news/canada/edmonton/alberta-heritage-trust-fund-review-1.5783754 · Provide one observation or critique of the investment policy. It can be a surprise to you or a constructive critique. (0.5) Explain very briefly. · Provide one piece of advice to the Minister of Finance with respect to the strategy or operation of the fund. (1.0) Explain briefly. Industry Report | Metals & Mining, Non-Precious MSCI ESG Research LLC Industry Report | Metals & Mining, Non-Precious | October 2020 MSCI.COM | PAGE 1 OF 27 © 2020 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document. Industry Report | Metals & Mining, Non-Precious October 2020 • Climate change presents both opportunities and risks for companies in this peer set1. Several companies including Coal India, Glencore, Teck, and Anglo American still own substantial coal reserves with a total of 111 billion tonnes of potential CO2 emissions (~17x total US emissions in 2018). Some companies are moving toward positions as key suppliers for new energy technologies. For instance, BHP, South 32, Anglo American, Nornickel, and Sumitomo Metal Mining are all producers of nickel, a metal with growing importance for renewable batteries. • Failures in environmental protection, however, may undercut new energy technology opportunities. Nornickel, long one of the most polluting companies with SOx emission intensities that were more than 20 times higher than the industry average (as of 2019), had another setback in 2020 when it spilled 21,000 tonnes of diesel oil in the Arctic. Russian regulators have estimated the costs to be over USD 2 billion. • Biodiversity and conservation are growing in importance to investors, as evidenced by the formation in 2020 of the Task Force on Nature-related Financial Disclosures (TFND) and by investor pressure pushing Rio Tinto’s CEO to step down as part of the fallout from the company’s destruction of two historic indigenous caves in 2020. Mines in biodiversity hotspots may face some of the highest risks of stakeholder pushback (see Exhibit 1). • Exhibit 1: Map of Mines Owned by Industry Companies in Biodiversity Hotspots 1 The Metals & Mining, Non-Precious Industry peer set comprised 52 companies that were constituents of MSCI ACWI Index as of August 27, 2020; Source: MSCI ESG Research LLC,. Rating momentum Issuer communication Report content Key issues modelling Key issues snapshot Corporate Governance Toxic Emissions & Waste Biodiversity & Land Use Health & Safety Labor Management Water Stress Carbon Emissions Corruption & Instability Appendices and scores Author Samuel Block | Vice President Related Reports Metals & Mining, Precious IR Steel IR Flooding in the Yangtze River Basin Threatens Mines The COVID19 burden on Metals and Mining companies Tailings Risks: Governance Failures & Climate Change MSCI ESG Research LLC Industry Report | Metals & Mining, Non-Precious | October 2020 MSCI.COM | PAGE 2 OF 27 © 2020 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document. Key Issues Modelling: Corporate Governance WEIGHT: 15% Good corporate governance practices support the long-term sustainability of a company and balance of the economic and social interests of its different stakeholder groups. As such, corporate governance is a default key issue for all companies, regardless of industry. • We do not measure exposure on this key issue • Board • Board independence, effectiveness, leadership, skills & diversity; audit & pay oversight; • Pay figures & performance alignment, equity plan dilution, severance & change of control; • Ownership structure, one share one vote, control mechanisms, shareholder rights, director elections, takeover provisions; • Accounting risk & events • Toxic Emissions & Waste WEIGHT: 10- 18% Metal mining and refining have high risks of pollution and contamination. Massive spills, tailings breaches, leaks, acid mine drainage, and heavy air emissions are high risk due to the volumes of waste and inherent properties. Continuous and vigilant management is required to mitigate risks. • Toxicity and volume of pollution by business segment, asset-weighted • Environmental management systems, targets, auditing, pollution prevention equipment • Performance comparison(weight/revenue): SOx, NOx, PM, and tailings • Pollution and land impact controversies Health & Safety WEIGHT: 12-14% Mining is a hazardous activity with high rates of fatalities and injuries. Causes of incidents include explosions, fires, rock falls, entrapment, landslides, and equipment-related accidents. Occupational diseases such as silicosis or noise induced hearing loss are also prevalent. H&S incidents can lead to disruptions, liabilities, and poor labor relations. • Business segments with high injury rates, such as underground coal mining • Operations in areas with high injury rates • H&S policies and implementation mechanisms across the supply chain, training, operations and contractors’ performance auditing, certification under OHSAS 18001, setting up improvement targets • Injury and fatality rate trends Biodiversity & Land Use WEIGHT: 12-14% Disruptions to local natural resources and traditional ways of life increase risks of community opposition and protests, which escalates risks of losing a license to operate. The losses to companies in these scenarios can be substantial. • Level of likely disturbance from business segments • Location of operations and associated conservation value • Policies on environmental preservation, community relations, human rights, resource conservation • Community and environmental impact assessments – scope and methodology, land rehabilitation • Community and environmental impact controversies RISK EXPOSURE INDICATORS RISK MANAGEMENT INDICATORS *Weights are determined at the GICS sub-industry level. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor’s. “Global Industry Classification Standard (GICS®)” is a service mark of MSCI and Standard & Poor’s MSCI ESG Research LLC Industry Report | Metals & Mining, Non-Precious | October 2020 MSCI.COM | PAGE 3 OF 27 © 2020 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document. Key Issues Modelling: Labor Management WEIGHT: 12-14% Dissatisfied workers can be a drain on the company’s value creation over the medium to long term, risking weakened productivity and raising risks of labor strikes. With economic disruptions from COVID-19, strong labor management is important to maintain morale. • Frequency of labor unrest in countries of operation, asset-weighted • Workforce size • Layoffs • • • Employee compensation & benefits such as training, education, and ESOPs • Engagement surveys; percentage of total workforce covered by collective agreements • Labor-related controversies • • Water Stress WEIGHT: 12-14% Water scarcity may increase costs to secure water supply. Insufficient water supply may lead to operational disruptions, a risk escalating with climate change. • Water input of the business lines • Operations located in high water stress areas such as Australia • Water optimization program in own operation, risk assessment • Programs with local communities • Water reduction program with agricultural suppliers • Water efficiency performance Corruption & Instability WEIGHT: 12-14% Corruption degrades civil society that can lead to violence and human rights violations. The fines for poor behavior and disruptions to operations may have high financial impact. Sustainable development requires shared benefit and protection of human rights • Corruption perception of countries of operation • Political instability and government effectiveness • Anti-Corruption and Human Rights Protection Policies and programs • Programs to ensure compliance to ethical standards • Quality and extent of community development programs • Record of corruption, bribery, human rights abuse Carbon Emissions WEIGHT: 9-13% Pressure to regulate carbon emissions is building with many in the industry even supporting increased regulations in order to limit uncertainty and reap further benefits from energy efficiency. • Carbon emission intensity of operations • Strength of regulations or commitments to reducing carbon emissions • • • GHG reduction targets and implementation mechanisms • Process adjustments (i.e. waste heat, top gas recovery), furnace efficiency initiatives, alternative iron making technology • Performance: Carbon emissions intensity (tCO2/sales) and trend RISK EXPOSURE INDICATORS RISK MANAGEMENT INDICATORS *Weights are determined at the GICS sub-industry level. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor’s. “Global Industry Classification Standard (GICS®)” is a service mark of MSCI and Standard & Poor’s MSCI ESG Research LLC Industry Report | Metals & Mining, Non-Precious | October 2020 MSCI.COM | PAGE 4 OF 27 © 2020 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document. Key Issues Snapshot Corporate Governance: Performance Overview We rate 9% of the MSCI ACWI Index Non-Precious Metals and Mining peer set as being worst in class for corporate governance relative