In this paper, we provide an overview of our engagement approach; expanding on the rationale of our climate engagement program – the reasons why we engage on climate and how we select those companies we are engaging with; the role our engagements play as part of our overall integration of ESG or sustainability issues within the investment process and lastly, provide insights into the learnings and best practice which our engagements have revealed during the period.
We see corporate engagement as an intrinsic part of the investment process. It can deepen our knowledge of, and confidence in those companies we invest in, as well as offering a way of building relationships and collaborating with company management. This in turn allows us to monitor, and where necessary, drive corporate conduct on issues that affect the companies’ long-term value. Such issues typically include strategy, capital structure, corporate governance, climate change and human capital.