Q1 2020 spotlight on
WHY ACTIVE BEATS PASSIVE FOR SUSTAINABLE INVESTING
Why we believe an active approach to sustainable investing works best.
Highlights from Q1 2020
- We voted at
Annual General Meetings
Extraordinary General Meetings
on behalf of our clients
- We had one-on-one meetings with the management of
companies, institutions and governments
- We engaged with
for the primary purpose of raising ESG concerns
Examples of engagement with companies included matters such as:
- board diversity
- climate change
- auditor tenure
- human capital management
- data security
- environmental solutions
Voting profile: Q1 2020
During the quarter, we exercised our clients’ voting rights at a total of 72 shareholder meetings.
Across all regions, votes were instructed against management recommendations on 93 separate resolutions, which equated to 39% of the 72 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.
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.
Inconsistent managing and reporting of greenhouse-gas emissions across the oil & gas sector.
Contribution rates for executives’ pensions not being aligned with those of the wider workforce.
Companies taking a tick-box approach rather than recognising and managing the risks and opportunities associated with material ESG factors.