Q4 2020 spotlight on

Engaging for a greener future

ENGAGING FOR A GREENER FUTURE

Why engagement is an effective way to support the energy sector’s transition to a lower-carbon future.

Highlights from Q4 2020

  • We voted at
    61
    Annual General Meetings
    +
    31
    Extraordinary General Meetings
    on behalf of our clients
  • We engaged with
    41
    companies
    for the primary purpose of raising ESG concerns
  • Examples of engagement with companies included matters such as:

    • diversity and inclusion
    • supply chains
    • climate change
    • human capital management
    • compensation
    • energy transition
    • environmental solutions
    • board effectiveness
    • succession planning
    • product safety
 

Voting profile: Q4 2020

During the quarter, we exercised our clients’ voting rights at a total of 92 shareholder meetings.

Across all regions, votes were instructed against management recommendations on 85 separate resolutions, which equated to 27.2% of the 92 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.

10

took no action3

57

in favour of management1

0

abstained

25

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.

Executive pay arrangements failing to reflect the impact of Covid-19 on the business and employees.

Companies’ continued timidity in disclosing their approach and targets in relation to corporate social responsibility and sustainability matters.

Nascent policies and processes addressing specific ESG concerns, such as climate change.

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.