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PM Capital

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。

01.4. 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。

We believe that ESG is simply part of good business practice and we look very closely at the regard a company's management team has for it. We incorporate ESG principles early on, with manufacturers of tobacco and weapons being screened from our investable universe.


The main areas that we cover within our research process include:

Environment - sustainability management practices and carbon emission policies
Social - this depends on the company but will include occupational health and safety standards, and labour practices
Governance - board structure, operational risk management, and directors and executive remuneration.

In the same way that there will be negative economic consequences for those businesses that cut corners around ESG issues, we also believe that there are positive economic benefits for those businesses that are proactive and progressive when it comes to ESG.

This is why we incorporate ESG issues into the discount rate that we use to value businesses. These must be considered when looking at a company's risk management framework, given the impact they may have to the value of the company over time.


Not having a strong focus on ESG is, in our view, simply bad business, which leads to poor outcomes for investors.

01.5. 補足情報 [任意]

As investors in businesses, it is a natural part of our research process to consider environmental, social and governance (ESG) factors.

We incorporate ESG principles early on, with manufacturers of tobacco and weapons being screened from our investable universe. We also believe that ESG is simply part of good business practice and, due to our active and concentrated investment approach, we look very closely at the regard a company's management team has for it.

Where we see management not addressing ESG issues appropriately, we will apply a discount to the value of a company. Not having a strong focus on ESG is, in our view, simply bad business, which leads to poor outcomes for investors. PM CAPITAL is proud to be a member of ESG Research Australia, which aims to encourage better investment decision-making through active consideration of ESG issues.


LEA 02. Reasoning for interaction on ESG issues

02.1. エンゲージメントの方法および対話を行う理由を明示して下さい。

エンゲージメントの種類

対話を行う理由​
単独/貴社内のスタッフのエンゲージメント
          To support investment decision-making
        

協働的なエンゲージメント

          To support investment decision-making
        

サービスプロバイダーのエンゲージメント

          To support investment decision-making
        

02.2. 補足情報。[任意]


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。

その他

          Company Level - Engagement by Portfolio Managers who is in charge of the company analysis.
        

03.3. 補足情報。 [任意]

PM CAPITAL has a reputation for encouraging good ESG practices and we regularly engage the management of the companies that we own around the continuous improvement of ESG practices.
Failing a suitable outcome, we are happy to approach the boards of listed companies directly, as well as taking our case to the press.


We will generally oppose proposals where we see:

  • The election of inappropriate directors, particularly where there is not a majority of independent directors or where there has been excessive turnover of board / senior executives
  • Excessive management remuneration arrangements, or a lack of alignment between executive incentive structures and a company’s operating performance
  • The appointment of auditors who are not independent.
  • Agitating for change in this way helps us to unlock the inherent value in a company in order to achieve a better outcome for our investors.

One example involved Austar which, as part of their Employee Share Plan, provided $43 million in interest-free loans to 13 senior managers and an $8.2 million interest-free loan to their chief executive.


As a minority shareholder, we were unable to block the employee share plan and so raised our concerns with management. We then voiced our views in the press to ensure that the new Employee Share Plan had more appropriate incentives in place.


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)


Process for engagements conducted with/on your behalf by service providers

LEA 07. Role in engagement process

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

07.1. サービスプロバイダーがあなたの貴社のために実施するエンゲージメントにおいて、貴社がどのような役割を担っているのか明示してください。

07.3. 補足情報。 [任意]


LEA 08. Monitor / discuss service provider information

08.1. サービスプロバイダーが貴社に提供する以下の情報を監視、協議しているかどうかを記載してください。

Please select all that apply

08.2. 補足情報。


General processes for all three groups of engagers

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


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

サービスプロバイダーのエンゲージメント

10.2. 補足情報。[任意]


Outputs and outcomes

LEA 11. Number of companies engaged with, intensity of engagement and effort (Not Applicable)


LEA 12. Engagement methods (Private)


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


LEA 14. Companies changing practices / behaviour following engagement (Private)


LEA 15. Examples of ESG engagements (Private)


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