Engagement is an important part of our ESG analysis and the investment process more broadly. Impax is a fundament-driven investor with a long-term investment horizon. We engage with companies when we have identified specific ESG-issues or concerns, when we require further information regarding an ESG-aspect (that is not publicly disclosed) or in order to encourage improvement in company ESG policies, processes and disclosures. We engage individually and together with other investors.
Engagement allows us to:
- Manage risks; proactively identify and mitigate issues
- Enhance company analysis; how companies respond to engagement is highly informative and this information is included in our ESG-analysis and our proprietary ESG-scoring of our companies
- Strengthen our investee companies over time; improving transparency, quality, processes and resilience
Our engagement work can be divided into the following types:
- Engagement with smaller companies
- Longer-term strategic engagement priorities
- Collaborative engagement
- Pre- or post AGM engagement
- Company due diligence & monitoring
We engage as part of our regular meetings with companies or through additional conference calls, meetings or emails or as part of joint communications with the investment community.
We maintain an engagement database detailing engagement issues, timings, outcomes and current status. It is reviewed regularly for unresolved issues requiring follow-up.