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Sycomore Asset Management

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. 貴社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。

01.3. エンゲージメントポリシーのURLを記載してください。[任意]

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

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.

01.5. 補足情報 [任意]


LEA 02. Reasoning for interaction on ESG issues (Not Completed)


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. 貴社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貴社にあるかどうか示してください。

03.2. 貴社内のスタッフが実行するエンゲージメントを特定し、優先順位を決定する際に使用する基準を説明してください。

03.3. 補足情報。 [任意]

- We identify and monitor engagement activities carried out by internal staff through the engagement module included in our centralised database. Engagement activities are identified and recorded at company level.

- Companies held in SRI portfolio are prioritary, but Sycomore AM might engage with any company within its investment universe.

- Sycomore AM's engagement actions are initiated on a case-by-case basis, most frequently as a follow-up from a voting decision or from our internal ESG analysis of the company if material ESG risks have been identified, or in reaction to a controversy. 


LEA 04. Objectives for engagement activities (Not Completed)


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. 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貴社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 (Not Completed)


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、貴社内の運用担当者や貴社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
単独/貴社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。[任意]

All engagement information is shared internally through our proprietary tool  SYCOVALO. All insights gained from various initiatives and engagement meetings are recorded in the database. Investment managers who consider this information useful for their investments are encouraged to use them. Also, the ESG team is fully integrated to the investment team so there is a continuous dialogue on ESG issues between ESG specialists and fund managers.


LEA 10. Tracking number of engagements

10.1. 貴社がエンゲージメントしている企業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
単独/貴社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]

We keep a record of all engagement meetings and engagement asks in our internal database SYCOVALO.


Outputs and outcomes

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

11.1. 報告年度に貴社がエンゲージメントを行った上場株式ポートフォリオの数を明示してください。

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

 

 

単独/貴社内のスタッフのエンゲージメント

56 Number of companies engaged
15 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

0
0 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

11.2. ESG問題に関連して報告年度中に企業と複数かつ現実的で詳細にわたる議論ややりとりを行ったエンゲージメントの割合を記載してください。

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(%)

 

 

単独/貴社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、貴社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]

Regarding collaborative engagements, Sycomore AM joined its first collaborative engagement in July 2016. The Human Capital Management (HCM) Coalition is a cooperative effort among a diverse group of institutional investors to further elevate human capital management as a critical component in company performance.

As the project was in its launching phase in 2016, we did not engage with companies in the framework of this collaborative engagement during the reporting year. 


LEA 12. Engagement methods

12.1. 貴社のエンゲージメントが以下のどの項目を含むか明示してください。

12.2. 補足情報 [任意]


LEA 13. Engagements on E, S and/or G issues (Not Applicable)


LEA 14. Companies changing practices / behaviour following engagement

14.1. 報告年度に貴社や貴社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正式に約束した事例件数を追跡しているかどうか明示してください。

14.2. 報告年度に貴社や貴社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、実務を変更した、または実務を変更するように正式に約束した企業の数を記載してください。

変更する、または変更する約束をしている企業の数

単独/貴社内のスタッフのエンゲージメント

2

協働的なエンゲージメント

0

14.3. 補足情報。

The part of our centralised database dedicated to the monitoring of engagement activities allows us to track achievements for each engagement. The engagement approach was formalized recently and we started a significant number of engagements this year. Although we began to see the very first results at the end of the year, it will take some years to reach a significant number of companies changing their practices.

Regarding collaborative engagements, Sycomore AM joined its first collaborative engagement in July 2016. The Human Capital Management (HCM) Coalition is a cooperative effort among a diverse group of institutional investors to further elevate human capital management as a critical component in company performance.

As the project was in its launching phase in 2016, we did not engage with companies in the framework of this collaborative engagement during the reporting year. 


LEA 15. Examples of ESG engagements

15.1. 報告年度に貴社または貴社のサービスプロバイダーが実行したエンゲージメントの事例を挙げてください。

トピックまたはESG問題
          Employee satisfaction at a French logistics company
        
実行者
目標

Introduce an employee satisfaction survey to better understand and monitor employee satisfaction and social climate. 

対象範囲およびプロセス

We met with the company's Investor Relation manager and asked whether the company had ever considered to conduct an employee satisfaction survey. We also explained our view on these surveys and how we think they can help to further develop and better monitor HR policy when used adequalty. As a first reaction, our interlocutor expressed his fear of a lack of interest and participation by employees. 

結果

As we met again approximately one year later and followed-up on this topic, he explained that after discussing it internally the company had just conducted its first employee satisfaction survey. The next steps of this engagement for us will be to follow-up on the results of the survey and how they have been used, and see whether the company is able to extand the limited parameter used for the first survey over time. 

トピックまたはESG問題
          Human Capital as a critical component of performance
        
実行者
目標

Further elevate human capital management as a critical component in company performance, in particular:

- Educate ourselves and other stakeholders about the role of Human Capital in company performance
- Engage companies about their Human Capital performance
- Encourage improved practices and disclosure
- Elevate board and senior management attention to Human Capital

対象範囲およびプロセス

The scope is global but with a focus on the United States as most members of the coalition are based in the United States. Members of the HCM Coalition will lead the engagement on different target companies, draft letters signed by the members of the coalition, and report on the results. 

結果

As the project was in its launching phase in 2016, we did not engage with companies in the framework of this collaborative engagement during the reporting year. 

トピックまたはESG問題
          Governance practices at a French mass catering company
        
実行者
目標

The general objective of this engagement is to use the opportunity of the annual pre-AGM consultation to establish a long-term dialog on governance practices within the firm and encourage the adoption of best practices on various issues such as the alignement of interest through remuneration policy and board composition. 

対象範囲およびプロセス

We participated in the pre-AGM consultation for the second time, following the same process. All suggestions were made during a call with Sycomore's governance team and the Director of IR and the Legal Counsel of the company, who directly pass the information on to the Board of Directors. We sent an email summarising the key points raised during our conversation to the company.

結果

We noticed some improvements on issues raised during our last call, in particular: 
- executive remuneration: the company strenghtened the performance conditions on the CEO's severance payment. This change was made to address the concern raised by several investors including Sycomore during the last pre-AGM consultations concerning the stringency of the former performance conditions. 
- remuneration report: the company committed to further enhance the transparency of the report (in particular with regard to the rationale for levels of achievement of qualitative objectives)

Furthermore, we followed-up on our suggestions concerning the qualitative criteria for the CEO remuneration and board composition, on which there had been no evolution, and explained the rationale. 

 

 

トピックまたはESG問題
          Environmental security at a French mining company
        
実行者
目標

Having detected the presence of certain operation sites of the company on a foreign governmental list of dangerous tailing dams, the objective of the engagement was to seek answers from the company on this situation and more generally on the management of past controversies on water pollution due to leaks in a tailing dam. 

対象範囲およびプロセス

We met with the company's Head of Sustainability and Head of Investor Relations to address the issue. After gaining a better understanding of the situation, we pursued the engagement by exchanging emails with the company. 

結果

The company confirmed it had contacted the concerned government to ask for the withdrawal of its sites from the list, which according to the company is not accurate, and explained how security had been reinforced since then. We encouraged the company to proactively pursue its efforts in terms of environmental security and its relationships with local communities and to further cooperate with the authorities to clear the situation regarding the classification of its sites as dangerous. 

15.2. 補足情報。


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