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Comgest

PRI reporting framework 2017

You are in Direct - Listed Equity Active Ownership » Engagement

Engagement

Overview

LEA 01. Description of approach to engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate whether your organisation has a formal engagement policy.

01.2. Indicate what your engagement policy covers:

01.3. Attach or provide a URL to your engagement policy. [Optional]

01.4. Provide a brief overview of your organization’s approach to engagement

Comgest is a bottom-up stock picker and the basis of our research includes meeting companies directly. For us it is quite natural to engage with companies regarding ESG issues. As an active shareholder and a promoter of RI practices, Comgest engages with companies in several ways. First, as a responsible investor, Comgest exercises its voting rights at general meetings. Secondly, Comgest establishes a constructive dialogue with investee companies to collect more information in order to refine its investment analysis and where it is deemed useful it also challenges companies on specific ESG issues seeking an improvement of ESG disclosure, risk mitigation, etc.

01.5. Additional information [optional]

Our engagement policy is on page 14 of our RI Policy


LEA 02. Reasoning for interaction on ESG issues

02.1. Indicate the method of engagement, giving reasons for the interaction.

Type of engagement

Reason for interaction

Individual/Internal staff engagements

Collaborative engagements

Service provider engagements

02.2. Additional information. [Optional]

In 2016, Comgest continued to participate in a collaborative engagement initiative to address the issues on responsible management of the supply chain in the Textile and Electronics industries. We had calls with a selection of companies.

In 2016, Comgest continued to participate in a collaborative engagement initiative to better understand the board members nominations of specific companies from France and the USA. We had calls and meetings with a selection of companies. We also had meetings with the lead and supportive members of this initiative.

In 2016, Comgest started to participate in a collaborative engagement initiative regarding the labour issues in the agricultural supply chain.


Process

Process for engagements run internally

LEA 03. Process for identifying and prioritising engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagement activities carried out by internal staff.

03.2. Describe the criteria used to identify and prioritise engagement activities carried out by internal staff.

03.3. Additional information. [Optional]


LEA 04. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

04.1. Indicate if you define specific objectives for your engagement activities.

04.2. Indicate if you monitor the actions that companies take following your engagements.

04.3. Indicate whether your organisation defines milestones and goals for engagement activities carried out by internal staff.

04.4. Indicate if you do any of the following to monitor and evaluate the progress of your engagement activities carried out by internal staff.

04.5. Additional information. [Optional]


Process for engagements conducted via collaborations

LEA 05. Process for identifying and prioritising collaborative engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

05.1. Indicate whether your organisation has a formal process for identifying and prioritising collaborative engagements

05.2. Describe the criteria used to identify and prioritise collaborative engagements

05.3. Additional information [Optional]


LEA 06. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

06.1. Indicate if you define specific objectives for your engagement activities carried out collaboratively.

06.2. Indicate if you monitor the actions companies take following your collaborative engagements.

06.3. Indicate whether your organisation defines milestones and goals related to engagement activities carried out via collaborations.

06.4. Indicate if you do any of the following to monitor and evaluate the progress of your collaborative engagement activities.

06.5. Additional information. [Optional]


General processes for all three groups of engagers

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

09.1. Indicate if insights gained from your engagements are shared with your internal or external investment managers.

Type of engagement

Insights shared

Individual/Internal staff engagements

Collaborative engagements

09.2. Additional information. [Optional]


LEA 10. Tracking number of engagements

10.1. Indicate if you track the number of engagements your organisation participates in.

Type of engagement
Tracking engagements

Individual / Internal staff engagements

Collaborative engagements

10.2. Additional information. [OPTIONAL]


Outputs and outcomes

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

11.1. Indicate the amount of your listed equities portfolio with which your organisation engaged during the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion (to the nearest 5%)
Specify the basis on which this percentage is calculated

Individual / Internal staff engagements

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

Specify the basis on which this percentage is calculated

Collaborative engagements

8
5 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

11.2. Indicate the proportion of engagements that involved multiple, substantive and detailed discussions or interactions with a company during the reporting year relating to ESG issue.

Type of engagement

% Comprehensive engagements

 

 

Individual / Internal staff engagements

 

 

Collaborative engagements

11.3. Indicate the percentage of your collaborative engagements for which you were a leading organisation during the reporting year.

Type of engagement

% Leading role

 

 

Collaborative engagements

11.5. Additional information. [Optional]


LEA 12. Engagement methods

12.1. Indicate which of the following your engagement involved.

12.2. Additional information. [Optional]

Letters include emails to companies


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

13.1. Indicate if your engagements in the reporting year covered E, S and/or G issues, providing an estimation of the breakdown.

Individual / Internal staff engagements

2 % Environmental only
9 % Social only
74 % Corporate Governance only
15 % Overlapping ESG issues
Total 100%

Collaborative engagements

0 % Environmental only
0 % Social only
50 % Corporate Governance only
50 % Overlapping ESG issues
Total 100%

13.2. Additional information. [optional]


LEA 14. Companies changing practices / behaviour following engagement

14.1. Indicate whether you track the number of cases during the reporting year where a company changed its practices, or made a formal commitment to do so, following your organisation’s and/or your service provider's engagement activities.

14.2. Indicate the number of companies that changed or committed to change in the reporting year following your organisation’s and/or your service provider's engagement activities.

Number of company changes or commitments to change

Individual / Internal staff engagements

3

Collaborative engagements

3

14.3. Additional information [Optional].


LEA 15. Examples of ESG engagements

15.1. Provide examples of the engagements that your organisation or your service provider carried out during the reporting year.

Topic or ESG issue
          Remuneration scheme
        
Conducted by
Objectives

Ensure that remuneration committee members are aware of the strong opposition of shareholders (48% of AGAINST votes at AGM) to the remuneration report and why there is such opposition

Scope and Process

The topic has been raised by Comgest at every meeting with the company over the past few years. We requested to talk to the Chair of the remuneration committee and the company put us on a waiting list for at least 2 years. As we thought it was inappropriate behaviour we raised the issue during a conference at which we knew one member of the remuneration committee would be present. We forced the discussion with him on the remuneration topic.

Outcomes

1. the remuneration committee member committed to report all requests from Comgest to the board

2. he committed to request that the peer group list used for remuneration setting be communicated to investors

15.2. Additional information. [Optional]


Communication

LEA 16. Disclosure of approach to ESG engagements

16.1. Indicate whether your organisation proactively discloses information on its engagements.

16.5. Indicate what engagement information your organisation proactively discloses to clients/beneficiaries.

Engagement information disclosed

16.6. Indicate how frequently you typically report engagements information

16.8. Additional information. [Optional]


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