We take our responsibilities as long-term shareholders (equities) and debt investors (bonds) extremely seriously. Where we identify that a company’s management has not addressed ESG risks adequately, we look to engage with the company directly or with other shareholders to work collaboratively towards positive change.
We view engagement as an important process that can enhance the incorporation of ESG into our investment approach. While engagement can take many forms, we don’t view all forms of contact as engagement. Contacts that we consider to be engagement are those that improve public disclosure (information engagements) or encourage improvements in ESG performance or generate change in the real economy (change engagements).
Our engagement activity is focused on core themes that are important to our stakeholders, enabling us to have a greater impact, develop areas of understanding and be more effective with our resources. In each case, in deciding when, how and why to engage, we act when we believe we can make a difference to the attractiveness of our investments by impacting outcomes at an investment level or at a wider market level.
Our fund managers and analysts are involved in engagement as part of their investment process. All engagement is conducted by the investment management team, which facilitates the inclusion of the engagement and monitoring activities into the investment decision making process. We believe that it’s in the best interest of our clients for us to use our influence on companies to promote strong corporate governance and sustainability.
Our engagement policy and annual Stewardship & Engagement report can be found in our Policies & Reports section.
To view our Engagement records for 2022, visit here
For examples of our engagement, see the below.