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Impax Asset Management

PRI reporting framework 2017

Export Public Responses

You are in Direct - Listed Equity Active Ownership » Engagement » Outputs and outcomes

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

28 Number of companies engaged
13 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

29
13 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]

In 2016 our engagement work divided as follows:

  • Engagement with smaller companies, 9%
  • Longer-term strategic engagement priorities, 18%
  • Collaborative engagement, 51%
  • Pre- or post AGM engagement, 12%
  • Company due diligence & monitoring, 11%

 

In 2016 our collaborative engagements were increasingly focused on more in-depth, longer-term specific ESG issues at the company-level, together with Impax's partners and less broad, lighter-touch sector or thematic collaborative engagements.

 


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。

          Advice. Detailed advice for especially smaller companies regarding establishing material, cost-effective sustainability processes and reporting. Longer-term and in-depth engagements.
        

12.2. 補足情報 [任意]


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

13.1. 報告年度におけるエンゲージメントがESGを対象としたかについて明示するとともに、ESG問題のおおよその内訳を記載してください。

単独/貴社内のスタッフのエンゲージメント

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

協働的なエンゲージメント

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

13.2. 補足情報。[任意]

In 2016 our collaborative engagements were increasingly focused on more in-depth, longer-term specific ESG issues at the company-level, together with Impax's partners and less broad, lighter-touch sector or thematic collaborative engagements.


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

11

協働的なエンゲージメント

9

14.3. 補足情報。

We focus our engagement on smaller companies and their governance and sustainability processes and structures. These companies are often positively disposed regarding ESG improvements, however often face limits to resources, both regarding staff and funds. The outcomes of these engagements often take time to crystallise, but we are encouraged by the continued and increased positive outcomes from our engagements, especially with US-based companies.


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
          Small company engagement. US materials recycling company, advice regarding establishing sustainability processes and reporting, following Impax's cost-effective, material framework.
        
実行者
目標

To give the company clarity on how cost-effective, material sustainability reporting can be established.

We suggested that strong initial sustainability reporting can be short, but very much to the point and would have the following elements (step-by-step):


1. Discussion around the most material non-financial (environmental, social) risks for company.
2. Establishing a small number of key metrics (KPIs) around these main or most material risks for company.
3. Reporting the annual statistics around these metrics (e.g. C02 emissions (direct/indirect), toxic emissions, staff accidents/incidents, food/product safety)
4. Setting targets around these metrics and establish regular reporting on how well they have been achieved.
5. Establishing management systems and processes  to enable achieving the targets (e.g. ISO 14001, OHSAS 18001, HACCP).


This can be 2-3 pages, no sizable, glossy CSR reports required.
 

対象範囲およびプロセス

This has been an on-going dialogue with mainly company IR over a number of months and has involved several conference calls and email exchanges to develop the process to this point. 

結果

On the back of this engagement, the company has committed to sustainability reporting and is in the process of implementing it.

トピックまたはESG問題
          AGM-related governance engagement. Finnish water treatment company.
        
実行者
目標

Objective is to improve company remuneration-related practices, disclosures and transparency.

ISS QuickScore has a weak score for the company's remuneration practices and disclosures.

対象範囲およびプロセス

Email exchanges, including detailed explanation of issues and one conference call with the company IR and head of sustainability and governance

結果

Company’s ISS QuickScore already improved from 8/10 to 7/10 due to their clarifications regarding stock options, LTIP to ISS after our initial email exchange with company. Company will be introducing LT performance periods going from 1 to 3 years, Claw-back policy, in place, they will now be externally disclosing it (on the back of our engagement and recommendation), they will be publicly disclosing severance pay for NEOs (not just CEO). Questions around TSR – we view share ownership as better for alignment than using TSR as a performance parameter. In the future, when company announces a new Director, they will immediately state independence “status” to ISS/Glass Lewis (on the back of our feedback), we discussed the Finnish practice of bundling all directors together in the proxy votes. They will see if this could be changed going forward.

トピックまたはESG問題
          Collaborative engagement with Impax's two investment partners, US testing company focus on establishing more robust sustainability processes and reporting.
        
実行者
目標

Objective is to understand the company's human rights and clinical trial policies and processes and to generally encourage improvement of company's ESG policies, practices and disclosures.

対象範囲およびプロセス

Letter to company IR (written and signed by the three asset management firms) detailing who we are, why ESG policies, processes and disclosures are important to investors and why they are beneficial for companies to develop. The letter was followed by a conference call with the company IR.

結果

Positive call, which was followed-up with an email detailing which peer companies have strong sustainability reporting and also detailing concrete next steps for company to develop KPIs and sustainability reporting. Follow-up call is scheduled.

トピックまたはESG問題
          Collaborative investor engagement, driven and coordinated by an NGO. Letters followed by individual company meetings regarding the sustainability of global food companies' product portfolios.
        
実行者
目標

Research by Chatham House and others has indicated that it will not be possible to limit temperature rises to 2°C – the goal agreed at the UN Climate Change Conference, COP21, in 2015 – if livestock production and consumption are not addressed, posing regulatory risk to the industry. Further to this, the wider-ranging sustainability impacts of the increased demand for animal products seen over the last 50 years could prove costly, with a recent University of Oxford study suggesting that if unaddressed, public health and environmental costs could be up to $1.6 trillion globally by 2050. The collective impact and possible accumulation of these factors creates supply chains that are inherently more susceptible to disruption. FAIRR is coordinating a collaborative engagement opportunity to call on companies to think strategically about building sustainable protein supply chains, diversifying their protein ranges and mitigating the various risks associated with future supply chain disruption.

Objective is to initiate long-term company dialogues on this important topic.

対象範囲およびプロセス

Letters outlining the sustainability challenges and possible opportunities and sent to 10 global food producers and retailers, by 40 investors, coordinated by FAIRR, followed by calls / meetings.

結果

Impax participated in two company engagement meetings on this topic (two UK food retailers). Very positive and interesting dialogues, however these are long-term issues, which will require follow-on discussions over the next few years. But importantly the first discussions on this topic have been established and food companies have been made aware that investors are focusing on these issues.   

トピックまたはESG問題
          Board diversity, governance, Japanese companies
        
実行者
目標

Since Japan established the Corporate Governance Code in July 2015, we have seen slow, but steady improvement of independence of Japanese boards. However, the majority of companies have no female representation either at boards or at the top management levels.

The objective of this engagement was to initiate discussions about this, find out about and suggest policies and processes that are supportive for establishing more diverse management teams and boards. 

対象範囲およびプロセス

Letters to four Japanese companies, (written and signed by the three collaborating asset management firms) detailing who we are, why diversity is important to investors and why it is beneficial for companies. The letter proposed a conference call for an initial discussion.

結果

It has been relatively difficult to reach and organise calls. We have had initial calls with two companies. While no concrete outcomes can be pointed to yet, the companies were quite interested in these issues and the first seeds have been sown in developing this. We will be following-up with the companies in the next 12 months on this topic.

トピックまたはESG問題
          US buildings energy efficiency company. Engagement regarding entrenched board and under-developed sustainability processes and reporting.
        
実行者
目標

Objective is to discuss: 1. company plans to declassify board (only 17% of S&P 500 companies have classified boards today), 2. the board average tenure is >12 years (board entrenchment) and 3. company's lack of robust sustainability processes and disclosures.

対象範囲およびプロセス

Email to company CFO to outline the objectives we would like to discuss. Email was followed by an initial conference call with the company CFO.

結果

Company has currently no plans to declassify the board and long tenures of directors are managed through continuous training and education. However, the CFO said they are working on developing environmental and social policies, processes and disclosures. We discussed the importance of focusing on material issues and Impax will be sending our framework of "cost-effective and material" sustainability processes and reporting to assist company in this process. Impax is also to send names of peer companies that have good HSE processes and disclosures in place. Very encouraging call, with tangible next steps for improvements in the company HSE processes.

トピックまたはESG問題
          Due diligence and monitoring engagement, update on ESG issues for US water infrastructure company.
        
実行者
目標

Objective is to discuss the upcoming AGM-agenda, governance and sustainability changes and issues at the company.

対象範囲およびプロセス

Conference call with company General Counsel, Chair of Nominations Committee, Head of Sustainability and Head of External Engagements

結果

Discussion about plans for management compensation in the 2017 AGM, no major changes. On the back of Impax' engagement in 2016, the company has established a double-trigger process for severance payments (from single-trigger). Company has established GHG reduction targets, Impax suggested for company to develop scientific GHG targets as well. We mentioned that it would be very useful to have impact data (water saved or GHG avoidance) through the company products and services. Company is trying to measure this, but difficult with many different end-markets and applications of their products. Company is declassifying its board from 2018 and are looking to improve gender diversity of the board. They also asked us to consider the following questions: 1. shareholder right to amend bylaws and 2. our view of level of over-boarding for directors, which we will follow-up on.

トピックまたはESG問題
          Water risk engagement, water intense companies.
        
実行者
目標

We have established which companies are most exposed to water (water intensity, consumption or withdrawals) in our investable universe. We are conducting engagements to understand the localised or facility-based water stress risks for the companies and encouraging them improve disclosure around local water risks. We have also asked companies about the use of shadow water pricing to reflect local water scarcity and risk. Questions also about water management and reduction targets.

対象範囲およびプロセス

Emails to water intense companies in our investable universe (food, water utility, industrial gases companies), followed by conference calls.

結果

These engagements are still on-going, but the general observations are that water intense companies have quite rapidly improved their internal processes for measuring, quantifying and managing water risks, (and using tools such as Aquaduct for this) but reporting about this is lagging behind, we will be following-up on this. Companies are not using shadow pricing, but some were considering it.

15.2. 補足情報。

Impax's focus areas of Engagement for 2016/2017:

Entrenched Boards

  • Boards with average tenures of >10 years and no new directors in the last five years
  • Companies with entrenched boards often lack sustainability processes
  • Focus on US companies

Board diversity

  • Boards lacking diversity regarding gender and/or competencies
  • Focus on Japanese companies

Water risk management (most material sub-sectors)

  • Understanding water risk exposures at local or basin-level, water performance
  • Focus on companies in the water utilities and food sub-sectors
  • Sustainability processes, small companies
  • Providing companies with guidance to develop sustainability processes and reporting
  • Focus on smaller US companies

Sustainability processes, small companies

  • Providing companies with guidance to develop sustainability processes and reporting
  • Focus on smaller US companies

 


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