Our portfolio monitoring service identifies companies that have breached – or might breach – recognised ESG standards. We then assess this information, along with data from other sources, to determine whether we should include the company in our engagement programme – through which we seek improvements from companies and play a role in influencing change.
One of the key factors we consider when prioritising our engagement efforts is whether the breach is of international standards or represents a high / significant ESG risk, i.e. is it: long-term or short-term; historic or ongoing; isolated or endemic; a potential reputation risk internationally or nationally.
Other factors we take into account include:
- our ability to participate in collaboration through the UNPRI clearinghouse led by other peers or as a co-lead;
- our ability to engage directly with the company;
- the potential effectiveness of the engagement; and
- the resources required.