Q1 2020 spotlight on

Why active beats passive sustainable investing

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
    55
    Annual General Meetings
    +
    17
    Extraordinary General Meetings
    on behalf of our clients
  • We had one-on-one meetings with the management of
    190
    companies, institutions and governments
  • We engaged with
    18
    companies
    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
    • compensation
    • data security
    • environmental solutions
 

Voting profile: Q1 2020

Voting

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.

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.