Achieving Positive Change
"In our experience, there is a clear appetite for engagement and learning by many companies, that value informed and thoughtful shareowners."
Active ownership is central to our approach - as long-term investors, engagement and voting can make a meaningful difference.
This allows us to improve our understanding of the opportunities, demands and challenges companies face. Importantly it allows us to promote and influence best practice and to actively push for change on material sustainability issues.
A systematic approach - focused on materiality and outcomes
To promote best practice we have developed a systematic approach to engagement that focuses on both materiality and the outcomes at the companies we invest in. This approach is shown below.
We believe our engagement efforts lead to more informed decision making, improved relationships with companies, and it helps ensure those companies operate with better governance and sustainability practices.
We continue to build on our work in this area and have observed:
- An increasing focus on engagement for change
- More frequent engagement on environmental and social issues
Although we have been successful in supporting change in a number of engagements, we keep asking, ‘How can we increase the success rate of the engagements we undertake?’
While it is easier to track engagement success purely on outcomes, this approach may be short-sighted. We do not interact with our investee companies in a vacuum, but as part of a complex system, with numerous interactions, dependencies and competing demands.
Knowing where the dependencies, barriers to progress and opportunities are can help us to prioritise our engagements. In turn, this improves efficiency for both us and our investee companies.
By challenging ourselves, and seeking greater efficiency we can help fulfil our clients’ ambitions by supporting the sustainability of the companies we invest in, thereby contributing to a more sustainable economy, society and environment.