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Colonial First State Global Asset Management (including First State Investments)

PRI reporting framework 2016

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You are in Direct - Listed Equity Active Ownership » Engagement

Engagement

Overview

LEA 01. Description of approach to engagement

01.1. 組織に正式なエンゲージメントポリシーがあるかどうか示してください。

01.2. エンゲージメントポリシーがカバーしている内容を示してください。

          We have an engagement and proxy voting policy and Global Stewardship Principles. In addition they  cover the escalation of engagements and proxy voting.
        

01.4. エンゲージメントに対する組織のアプローチの概要を説明してください。

Engagement with company management is a fundamental part of our teams’ investment processes. Through company engagement, we seek to highlight areas for potential improvement and risk reduction, encourage improved disclosure on ESG issues, and commend companies that are making progress in this area. We have guidelines and principles for corporate engagement, which are publicly available on our website.

On occasions where our engagement activities with company management are unsuccessful, we may escalate the issue, for example by writing to, or meeting with, the chairperson or lead independent director, voting against directors who we believe are not providing appropriate oversight, or collaborating on further engagement with other like-minded investors. Ultimately we may choose to sell down holdings in companies where we lose confidence in the management of the business following unsuccessful attempts to engage. 

01.5. 補足情報 [任意]


LEA 02. Reasoning for interaction on ESG issues

02.1. ESG問題について企業とやりとりする理由およびこれらのやりとりを実行する担当者を記載してください。

エンゲージメントの種類

やりとりの理由

個人/組織内のスタッフのエンゲージメント

          To increase confidence in the company’s management
        

協働的なエンゲージメント

サービスプロバイダーのエンゲージメント

02.2. 補足情報。[任意]

Collaborative engagement opportunities are normally identified by the responsible investment team where either a firm-wide approach is taken (i.e. for engagement with regulators and corporate industry bodies) or the opportunity is directed at individual investment teams. 


Process

Process for engagements run internally

LEA 03. Process for identifying and prioritising engagement activities

03.1. 組織内のスタッフが実行するエンゲージメント活動を特定し、優先順位を決定する正式なプロセスが組織にあるかどうかを記載してください。

03.2. エンゲージメントをどのように特定し、優先順位を決定するかを説明してください。

03.3. 補足情報。 [任意]

We asked teams to rank which of the criteria is most used to prioritise engagements, the three items not selected received the lowest ranks but were selected as relevant by some teams. 


LEA 04. Objectives for engagement activities

04.1. 組織内のスタッフが実行する組織のエンゲージメント活動に具体的な目的を定義しているかどうかを記載してください。

04.2. 組織内のスタッフが実行する組織のエンゲージメントを受けた企業の行動を監視しているかどうかを記載してください。

04.3. 組織内のスタッフが実行するエンゲージメント活動のためにマイルストーンと目標を組織で定義しているかどうか示してください。

04.4. 組織のエンゲージメント活動の進捗を監視し、評価するために以下のいずれかを実施しているかどうか示してください。

04.5. 補足情報。[任意]

Engagement is governed by our engagement and proxy voting guidelines and global stewardship principles. Each team has its own process for setting objectives and monitoring engagements with all teams either doing one or more of the following:

  • Maintaining a company meeting database
  • Incorporating engagement outcomes in stock notes
  • Discussing engagements in regular team meetings (teams meet between two and five times a week)

When surveyed:

4.1 - One team set objectives for all engagements, three teams set objectives for the majority of engagements, three teams set the objectives for the minority of cases and one team does not set objectives.

4.2 - Four teams monitor company action in all cases, three do so in the majority of cases and one does in the minority of cases.

4.4 - Two teams define and set timelines milestones and goals, two track progress, two revise and revisit goals on a continuous basis, and one establishes a process for when goals are not met. 


Process for engagements conducted via collaborations

LEA 05. Process for identifying and prioritising collaborative engagement

05.1. 協働的なエンゲージメントを特定し、優先順位を決定する正式なプロセスが組織にあるかどうか示してください。

05.3. 補足情報 [任意]


LEA 06. Objectives for engagement activities

06.1. 組織が関与する協働的なエンゲージメントに目的が定義されているかどうか示してください。

06.2. 組織の協働的なエンゲージメントを受けた企業の行動を監視しているかどうか示してください。

06.3. 協働エンゲージメント活動に関連したマイルストーンと目標を組織で定義しているかどうか示してください。

06.4. 組織のエンゲージメント活動の進捗を監視し、評価するために以下のいずれかを実施しているかどうか示してください。

06.5. 補足情報 [任意]

When evaluating engagements we consider whether the company has changed the behaviour in question or whether it provided sufficient information to reassure us that the issue is being adequately managed. We also consider whether the process has added to our understanding of the industry, companies or issues in question.

When agreeing to participate in a collaborative engagement the relevant investment team undertakes to follow up with the company in individual meetings and to monitor progress. We have been concerned that letter writing campaigns without individual investor follow up may ultimately undermine the effectiveness of collaborative engagements.


General processes for all three groups of engagers

LEA 09. Share insights from engagements with internal/external managers

09.1. エンゲージメントから得た考察を投資決定の際の検討事項として、組織内の運用担当者や組織外の運用会社と共有しているかどうかを記載してください。

エンゲージメントの種類

共有する考察

個人/組織内のスタッフのエンゲージメント

協働的なエンゲージメント

09.2. 補足情報。

ESG engagement and proxy voting is performed by the relevant analysts and portfolio managers not by a separate team. As a result analysis of ESG issues which can influence an investment decision can also influence engagement and proxy voting activities or visa-versa. We strongly believe this integrated approach to company analysis and stewardship is critical to the full and consistent application of responsible investment principles. 

For collaborative engagements, progress is incorporated by the team(s) involved, however we only share the information with other teams where we believe the engagement is relevant to them. 


LEA 10. Tracking number of engagements

10.1. 組織がエンゲージメントの数を追跡しているかどうかを記載してください。

エンゲージメントの種類
エンゲージメントの追跡

個人/組織内のスタッフのエンゲージメント

協働的なエンゲージメント

10.2. 補足情報。[任意]

In terms of tracking individual engagements, four teams track the number of engagements in full, one team partly tracks the number of engagement, one indicated that they don’t track engagements but could provide a reasonable estimate and two did not track engagements.

In many cases engagement occurs as part of the ongoing relationship with companies that can take years to develop. For the most part ESG meetings are not held separately to meetings discussing the financial performance of the company and so for some teams narrowing engagements to ESG related interactions is not possible.

Each team has its own process for monitoring engagements with all teams either doing one or more of the following:

  • Maintaining a company meeting database
  • Incorporating engagement outcomes in stock notes
  • Discussing engagements in regular team meetings (teams meet between two and five times a week)

Outputs and outcomes

LEA 11. Number of companies engaged with, intensity of engagement and effort

11.1. 報告年度に組織がエンゲージメントを行った企業の数を記載してください。

エンゲージメントを行った企業の数
割合(5%刻み)
この割合の計算基準を明記してください

個人/組織内のスタッフのエンゲージメント

845 Number of companies engaged
30 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

協働的なエンゲージメント

2
0 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

11.2. 報告年度のエンゲージメントの中で、総合的なエンゲージメントの割合を記載してください。 [任意]

エンゲージメントの種類
総合的なエンゲージメントの割合(%)

 

 

個人/組織内のスタッフのエンゲージメント

 

 

協働的なエンゲージメント

11.3. 報告期間の協働的なエンゲージメントの中で、組織が主導したエンゲージメントの割合を記載してください。 [任意]

エンゲージメントの種類
主導的役割を果たした割合(%)

 

 

協働的なエンゲージメント

11.5. 補足情報。[任意]

There is some variability in how different investment teams define and capture engagements which makes it difficult to track from a whole of organisation level. The investment team with the largest number of reported engagements also estimated that <10% of them were comprehensive which influenced the answer to 11.2. The number of comprehensive engagements was estimated by two teams to be greater than 50%, by two teams as between 10-50% and by two teams as less than 10%, two teams could not estimate. 


LEA 12. Engagement methods

12.1. 組織のエンゲージメントに以下の事項が含まれていたかどうか示してください。

12.2. 補足情報 [任意]


LEA 13. Engagements on E, S and/or G issues

13.1. 報告年度のエンゲージメントがESG問題を対象としたかを記載してください。

エンゲージメントの種類

対象

 

 

個人/組織内のスタッフのエンゲージメント

 

 

協働的なエンゲージメント

13.2. ESG問題のおおよその内訳を記載してください。

Individual / Internal staff engagements

30 環境のみの割合(%)
20 社会のみの割合(%)
40 コーポレートガバナンスのみの割合(%)
10 ESG問題が重複する割合(%)
100%

Collaborative engagements

環境のみの割合(%)
社会のみの割合(%)
100 コーポレートガバナンスのみの割合(%)
ESG問題が重複する割合(%)
100%

13.3. 補足情報。

We can confirm that engagements covered all three areas however we do not track the number of engagements in this way consequently the breakdowns are estimates.


LEA 14. Companies changing practices / behaviour following engagement

14.1. 報告年度に組織や組織のサービスプロバイダーのエンゲージメント活動を受けて、企業が実務を変更した、または実務を変更するように約束した事例の件数について信頼できる推定値があるかどうかを記載してください。

14.3. 補足情報。


LEA 15. Examples of ESG engagements

15.1. 報告年度に組織が実行したエンゲージメントの例を挙げてください。

トピックまたはESG問題
          Samarco which is a 50/50 JV between BHP Billiton and Vale. Failure of the tailings dam.
        
実行者
目的

Understand the impacts of the incident, assess management's response and make clear our expectations for good faith remediation. 

対象範囲およびプロセス

Immediately following the dam failure a team member undertook a video conference call with representatives from Vale and subsequently BHP’s CEO conducted a group conference call with investors and analysts in which we participated.

The team put together a summary of facts regarding the dam failure and the impact on the local environment.

In November 2015 we met with Vale’s CFO in Brazil and were assured that the Company is fully committed to its remediation responsibilities. We also undertook a visit to their Carajas mining operation.

結果

We continue to monitor the developments at the Samarco operation which we expect to remain closed for an extended period of time.

トピックまたはESG問題
          Related-party transaction: in Oct-15, RSP Permian, Inc. (RSPP) announced a material (USD130mn) deal which involved the purchase of assets from RSPP’s two largest shareholders.
        
実行者
目的

Express concerns at related party transaction. Seek comfort that it would be conducted at arms length. 

対象範囲およびプロセス

Engaged the Chief Financial Officer (CFO) via conference call. We voiced our concerns about the nature of the deal. Whilst he was able to provide seemingly plausible explanations to the related-party transaction we remained unsatisfied as to the true arms-length nature of the deal.

Subsequently, a meeting was arranged with the CEO in Midland in Nov-15. According to both the CEO and CFO, the founders had insufficient capital to drill on this property . We note that the value of their holding in RSPP at the time was over USD800mn (versus the value of the deal at USD130mn and a capex figure likely much lower than that).

結果

After careful consideration we decided to exit our holding in RSPP. Without sufficient and convincing clarity on the motivations of the sellers we cannot get comfortable that the deal was struck in the best interests of RSPP shareholders. The two largest shareholders will continue to own circa 30% of the company and declined to participate in the capital raising to fund the deal.

トピックまたはESG問題
          Eldorado Gold - Executive remuneration
        
実行者
目的

Regular review of the position ahead of the AGM raised concerns regarding compensation, specifically the increase in the CEO’s total compensation over the previous year despite poor share price performance. 

対象範囲およびプロセス

In April 2015 we notified the company’s shareholder services representative that we would vote in favour of re-appointing the chair of the executive compensation committee but that we would be engaging with the company directly to raise our concerns over the structure of the executive compensation plans.  We also flagged at the time our view that that to improve governance the company should allow shareholders the opportunity to vote on remuneration.

In May 2015 we met with the CEO and expressed our concerns around compensation.  

結果

During our direct engagement the company undertook to address the concerns raised around compensation.  In October 2015 it was announced that executive compensation would be reduced by 20% for the CEO and 10% for the executive team. 

トピックまたはESG問題
          Sealink - director equity grant
        
実行者
目的

Have the company drop performance based pay for directors.

対象範囲およびプロセス

We discussed with senior management our intention to vote against several proxy voting resolutions, most notably an equity grant suggested for a non-executive director which was dependent on company performance.  We clearly are of the view that non-executive directors should be on standard, fixed remuneration to maintain the highest possible degree of independence. 

結果

We discussed the resolution with senior management and the Chairman. They listened to our concerns and the contested resolution was subsequently removed. Sealink remains one of our favoured positions in the small caps portfolio.

トピックまたはESG問題
          Harvey Norman - Board tenure and independance
        
実行者
目的

To see board renewal and new skills added to the board that will improve our confidence that any acquisitions made by the company are independent and financially sound. We firmly believe a strong, independent board will be in the best long-term interests of the company and its shareholders.

対象範囲およびプロセス

We held discussions with senior management around renewal of the board. The majority of the current board has been in place for more than a decade, and four of the ten positions on the board currently hold executive positions in the company.

Several discussions have been held with senior management, including the Chairman and CEO. 

結果

Discussions are ongoing

トピックまたはESG問題
          Newcrest - safety. The worker deaths occurred at Newcrest's Telfer Mine,
        
実行者
目的

Understand what measures will be taken on safety, encourage improvements.

対象範囲およびプロセス

Letter to company and meeting with company.
 

結果

Much more work is being done on safety – DuPont have been brought in and they have been looking at larger companies’ best practices. We continue to monitor. 

トピックまたはESG問題
          Show of hands voting in Australia
        
実行者
目的

The investor initiative called for 38 companies to adopt poll voting instead, where the one-share one-vote principle applies.  Led by TIAACREF
with engagement support from the Australian Council of Superannuation Investors (ACSI).

対象範囲およびプロセス

Engaged via joint letters and meetings with the company.

結果

Almost two-thirds have improved practices in their 2015 shareholder meetings, compared to 2014, with most moving to poll voting for all resolutions. 

トピックまたはESG問題
          Federation Centres - sudden removal of CEO
        
実行者
目的

Understand reasoning and assess if justifiable

対象範囲およびプロセス

Understand reasoning and assess if justifiable

結果

Meeting with Chairman and independent board members. Took us through the history and reasoning for decision. Found that the board acted with proper due care. Maintained our ownership of stock

トピックまたはESG問題
          Vonovia - Dilutive Equity raising
        
実行者
目的

Understand reasoning and assess if justifiable

対象範囲およびプロセス

Meetings with company and conference calls. 

結果

No suitable explanation was given. Undertook to zero weight position

トピックまたはESG問題
          Pacific Textile - Dangerous working conditions at factories, including extremely high temperatures and exposure to dust, chemicals, and dirty sewage highlighted by Uniqlo.
        
実行者
目的

Raise the concerns and discuss how the company will be addressing these issues. 

対象範囲およびプロセス

Discussed at team meeting and meeting with company.

結果

Response from company:

  • cut weekly working hours
  • No more penalties being levied on workers’ scrappage rates; it’s been replaced by a tiered bonus system
  • hire another 800 in Panyu to offset working hours cut
  • SGS inspection visit paid by Uniqlo to the Guangzhou factory

15.2. 補足情報。

It is important to note that we do not claim to be the sole reason companies have made changes to their practices in relation to the issues described above. In many instances there are multiple investors and other stakeholders who express similar concerns. We believe our engagement with companies on ESG issues makes a positive contribution to the sustainability of the company and consequently shareholder returns over the long-term. 


Communication

LEA 16. Disclosure of approach to ESG engagements

16.1. 組織がエンゲージメントに関する情報を積極的に開示しているかどうかを記載してください。

16.2. 一般に開示されている情報が、顧客や受益者に開示されている情報と同じであるかどうかを記載してください。

16.3. 組織が顧客/受益者および/または一般に積極的に開示しているエンゲージメントに関する情報の種類を記載してください。

開示しているエンゲージメントに関する情報

          Approach to engagement by team
Engagement examples including information above
        

16.4. 通常、エンゲージメントの情報を報告する頻度について記載してください。

16.8. 補足情報。[任意]


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