Sycomore AM is convinced that engaging with the companies it invests in is mutually beneficial as it will create value for the company and its stakeholders. While in an engagement meeting investors share ESG best practice and help make the business case for sustainability, companies hear different views on the sustainability rationale for their business. A successful engagement outcome is when both parties feel empowered with a clear sustainability roadmap and key milestones for a more sustainable future.
Sycomore AM will:
- Engage with companies in its portfolios to better understand their ESG risks and opportunities;
- Encourage companies to publish their ESG strategies, policies and performances;
- Encourage companies to be as transparent as possible following particularly poor performances or a controversy, and to take corrective actions without delay;
- Vote at general meetings of all companies it holds, ask questions, oppose or support shareholder resolutions as necessary;
- Sell a stock in case there is no ESG improvement for companies held in SRI funds.
However, Sycomore AM will not:
- Try to get involved in defining the company strategy or in the day-to-day running of the business;
- Ask for a seat on the board.