Q2 2020 spotlight on

Q2 2020 Spotlight

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES REPORT

Hanneke Smits, CEO, and Lloyd McAllister, responsible investment analyst discuss our latest Task Force on Climate-related Financial Disclosures (TCFD) report.

Highlights from Q2 2020

  • We voted at
    279
    Annual General Meetings
    +
    13
    Extraordinary General Meetings
    on behalf of our clients
  • We engaged with
    30
    companies
    for the primary purpose of raising ESG concerns
  • Examples of engagement with companies included matters such as:

    • diversity
    • supply chains
    • climate change
    • auditor tenure
    • human capital management
    • compensation
    • environmental solutions
 

Voting profile: Q2 2020

During the quarter, we exercised our clients’ voting rights at a total of 292 shareholder meetings.

Across all regions, votes were instructed against management recommendations on 681 separate resolutions, which equated to 53% of the 292 meetings.

1 In favour of management on all resolutions.
2 Against management on one or more resolutions.
3 Took no action owing to share blocking.

6

took no action3

132

in favour of management1

0

abstained

154

against management2

Key issues of concern

ESG quality reviews

We conduct quality reviews analysing the separate ESG aspects of all companies our global sector analysts are considering recommending for investment. These quality reviews are undertaken by our responsible investment team who award an ESG rating score out of 10. Each quarter key issues of concern are identified and are closely monitored by our responsible investment analysts.

Lack of progress by North American companies in addressing compensation structures that allow executives to be rewarded for poor performance.

Absence of substance and action following support given to the US Business Roundtable’s statement on corporate purpose.

Short-term decisions taken in relation to employment matters at the expected expense of long-term performance.

Quality

Important information

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those countries or sectors. Please note that portfolio holdings and positioning are subject to change without notice.