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AP1

PRI reporting framework 2017

You are in Direct - Listed Equity Active Ownership » Engagement » Process » Process for engagements run internally

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. Indicate whether your organisation has a formal process for identifying and prioritising engagement activities carried out by internal staff.

03.2. Describe the criteria used to identify and prioritise engagement activities carried out by internal staff.

03.3. Additional information. [Optional]

As large shareholder in Swedish companies, focus for engagement done by internal staff is on these companies primarily. With approx 25 Swedish companies in the Swedish equity portfolio we attend all AGM. We have one to one meetings arranged by us with the chairman or meetings arranged by the companies themselves with a group of investors  on regular basis. Corporate governance issues are always high on the agenda and, when appropriate, any ESG issue of concern to us. Íssues are identified through a systematic monitoring of external sources, ratings etc.

We also use a theme based approach whereby we identify a specific issue of concern to us, then doing a thorough analysis of how well different companies are at addressing the issue. Based on that analysis, we identify laggards and engage with them to promote change in the area of interest.

For proxy voting outside Sweden, we vote on almost all companies in our developed market portfolio (approx 300 companies in the US, Japan, Australia, Canada,  France, Germany, Ireland, Italy, Japan, Jersey, Netherlands, Spain, Switzerland, United Kingdom and United States.)

For approximately 50 companies a letter is sent describing the rational for voting against the proposal by management. When we select the companies that we send letters to, we prioritize two issues, remuneration and split CEO/Chair.

A large porpotion of AP1´s engagment activites are done under the Ethical Council umbrella, where AP1 is a founding member. How engagements are identified and prioritised is to be found on www.ethicalcouncil.com and in the annual report of the Ethical Council.


LEA 04. Objectives for engagement activities

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

04.1. Indicate if you define specific objectives for your engagement activities.

04.2. Indicate if you monitor the actions that companies take following your engagements.

04.3. Indicate whether your organisation defines milestones and goals for engagement activities carried out by internal staff.

04.4. Indicate if you do any of the following to monitor and evaluate the progress of your engagement activities carried out by internal staff.

04.5. Additional information. [Optional]

Analysis of Swedish companies and meetings are done on regular basis, not only when specific incidents have happened but to have an ongoing dialogue with the company, thus formal goals or objectives are not necessarely set prior to the discussions. Follow-up of previous discussions are standard item on the agenda. For non-Swedish holdings, engagement on G is mostly focused on explaining the reason behind our voting decisions. Monitoring of progress is done at least annually, when voting the following year. 


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