stewardship.

We are firm believers in the importance of stewardship. This is a crucial approach to protect and enhance the long-term value of the assets entrusted to us by our clients, and an indispensable tool to achieve measurable impact beyond financial returns. Through active ownership, we support best practice-aligned corporate governance structures as the cornerstone for businesses to thrive. This is turn allows us to help companies to transition to sustainable business models. This means that through stewardship, we can also make a positive contribution to the CLIC™ economy, which we have identified as the key investment driver or the foreseable future.

We enter into dialogue with companies, engage with them and use our votes to guide them towards more sustainable operating models. Having fully integrated ESG forward and backward-looking data and considerations, we use this dialogue to enhance our understanding of a company’s sustainability, allowing us to feed it back into investment analysis.

Stewardship plays a vital role in informing the investment process and enhances the value of clients' assets

Engagement

As an active asset manager, engagement is how we open and maintain, continuous and constructive dialogue with a company throughout the investment lifecycle, and across different asset classes.  The outcomes of our engagements influence our investment views thereby ensuring a circular and integrated approach.

We engage on a wide range of issues, from systemic to sector, and proxy voting engagements. We engage using our proprietary financial materiality approach that highlights key issues on a sectorial basis thereby enhancing risk/return calibration. Our engagements address firstly the extent to which investee companies understand and recognize their ESG risks, integrate them in their strategy and manage them appropriately, asking for changes where necessary. Secondly, we engage to understand how well positioned the companies are vis-à-vis sustainability and the CLIC™ economy, and when appropriate, we engage for change towards sustainable business models. We emphasise temperature alignment through appropriate disclosures and target setting. 

For each engagement undertaken, one or more engagement objectives are established and subsequently, we enter into a dialogue with the company to address them. We have built an ‘engagement tracker’ tool allowing us to measure progress each time we have an interaction with a company. In measuring progress against our own targets, we are mindful that some engagements advance slowly, whereas others can be (positively or negatively) resolved relatively quickly. For shorter engagements, progress and resolution are usually arrived to after one or two interactions, whereas for other more structure issues, our tracker allows us to build both a content and a timeline view of the engagement.

 Our Engagement Policy document is available here.

 Our Stewardship implementation document is available here.

 

Proxy voting

We use our Voting Guidelines to make vote decisions that in our view protect and enhance the long term value of our Clients’ assets. We see Voting, together with Engagement, as the crucial elements of our Stewardship approach. Exercising voting rights on behalf of our clients allows us to express our view on critical matters affecting our investee companies, and also companies’ impact on societies and the environment. In doing so, we consider matters (this list is not exhaustive) such as strategy, corporate governance, share capital management, shareholders’ rights, audit issues, transparency, disclosure, remuneration, social and environmental matters and companies’ alignment with the transition to a low-carbon and climate-resilient economy. These principles reflect our belief that sound and solid corporate governance structures and the effective management of social and environmental risks create a frameworks within which a company can be run in the long-term interests of its shareholders and stakeholders.

 Our Voting Guidelines are available here.

 Our Vote activity disclosures are available here.

 

Contact

Should you have any questions, please contact Rebeca Coriat, our Head of Stewardship or our Proxy Voting Team.