English

    our stewardship framework.

    engagement
    engagement·proxy voting·stewardship reporting·video·related content

    Stewardship refers to how we aim to protect and enhance the long-term sustainable value of the assets entrusted to us by our clients. Stewardship is an integrated, value-adding approach applied across the entire investment lifecycle – from capital allocation through active management and oversight – embedding research, monitoring, and oversight to drive long-term value and contribute positively to the transition. Beyond being a crucial tenet of our fiduciary duty to clients, stewardship plays a key role in strengthening resilience and mitigating idiosyncratic or systemic market risks.

    Our key stewardship objectives are as follows:

    Promotion of a company’s alignment to the transition and supporting the vision for sustainable value creation. In other words, is a company accelerating or slowing down the transition? How financially exposed and aware is it of the transition?
     

    Promotion of resilient corporate sustainability and corporate governance1. In pursuing this, we ask: are the company’s foundations and structure adequately set up to mitigate transitional risks and support the  promotion and oversight of successful business models?
     

    Our stewardship is discharged through two connected tools: engagement and proxy voting. We enter into dialogue with companies, engage with them and use our proxy votes to guide them towards more sustainable operating models.  Such dialogue enhances our understanding of a company’s sustainability, allowing us to feed it back into the investment analysis. 

     

    our stewardship statement

     

    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.

    Our driving principle is to use engagement to move companies at scale and depth towards sustainable business models. We approach engagement using science-based analysis and on a company-by-company basis. Our activities are based on the transition pathways and trajectories for each industry mapped by  LOIM research – these aim to promote the transition to an economy that is climate-aligned, nature-positive and circular. As such, our engagement approach is harmonised to target the key systems changes necessary for the transition to a CLIC® economy.

    Simultaneously, engagement enables us to help business models transition one company at a time. Each company needs a different and tailored engagement programme in order to foster its individual pathway.

     Please read our Engagement Policy.

    proxy voting.

    Exercising proxy 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 including (but not limited to): 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, nature-positive 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 framework within which a company can be run in the long-term interests of its shareholders and stakeholders.

    Our Corporate Governance Principles and Proxy Voting Guidelines.

    Our Proxy Voting Policy.

    the importance of stewardship.

    1 Based on the OECD’s definition of corporate sustainability: ‘Integrating of environmental and social considerations into a company’s strategy, operations and disclosures’ and corporate governance, good corporate governance supports market confidence and integrity, sustainable growth and financial stability’. Source: Corporate governance | OCSE 

    Some of the funds presented on this website do not promote environmental or social characteristics as per Article 8 SFDR; nor do they have sustainable investments as their objective as per Article 9 SFDR.

    There is no guarantee that an investment objective will be achieved or that a return on capital will be obtained. Before making any investment decision, please consider all the objectives, characteristics, and binding elements of the selection process and methodological limits contained in the Prospectus, its SFDR Appendix, as well as the Summary of the website Product disclosure of the promoted fund.

    More information on the European Sustainable Finance Disclosure Regulation (EU) 2019/2088 (SFDR) is available at: https://am.lombardodier.com/en/professional/sustainability/european-SFDR.html