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ACTIAM

PRI reporting framework 2017

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Outputs and outcomes

LEA 11. Number of companies engaged with, intensity of engagement and effort

11.1. Indicate the amount of your listed equities portfolio with which your organisation engaged during the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion (to the nearest 5%)
Specify the basis on which this percentage is calculated

Individual / Internal staff engagements

79 Number of companies engaged
30 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

Collaborative engagements

332
56 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

Service provider engagements

177
13 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

11.2. Indicate the proportion of engagements that involved multiple, substantive and detailed discussions or interactions with a company during the reporting year relating to ESG issue.

Type of engagement

% Comprehensive engagements

 

 

Individual / Internal staff engagements

 

 

Collaborative engagements

 

 

Service provider engagements

11.3. Indicate the percentage of your collaborative engagements for which you were a leading organisation during the reporting year.

Type of engagement

% Leading role

 

 

Collaborative engagements

11.4. Indicate the percentage of your service provider engagements that you were highly involved in during the reporting year.

Type of engagement

% High involvement

 

 

Service provider engagements

11.5. Additional information. [Optional]


LEA 12. Engagement methods

12.1. Indicate which of the following your engagement involved.

12.2. Additional information. [Optional]

An engagement is always commenced by a letter outlining the objectives of the engagement, followed by a request for a call with the relevant person or team. Engagements are conducted by the ESG team and always involve ESG research.

In 2016, ACTIAM visited operations of several palm oil companies in Indonesia and Malaysia.


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

13.1. Indicate if your engagements in the reporting year covered E, S and/or G issues, providing an estimation of the breakdown.

Individual / Internal staff engagements

75 % Environmental only
0 % Social only
0 % Corporate Governance only
25 % Overlapping ESG issues
Total 100%

Collaborative engagements

46 % Environmental only
5 % Social only
0 % Corporate Governance only
49 % Overlapping ESG issues
Total 100%

Service provider engagements

7 % Environmental only
11 % Social only
22 % Corporate Governance only
60 % Overlapping ESG issues
Total 100%

13.2. Additional information. [optional]


LEA 14. Companies changing practices / behaviour following engagement

14.1. Indicate whether you track the number of cases during the reporting year where a company changed its practices, or made a formal commitment to do so, following your organisation’s and/or your service provider's engagement activities.

14.2. Indicate the number of companies that changed or committed to change in the reporting year following your organisation’s and/or your service provider's engagement activities.

Number of company changes or commitments to change

Individual / Internal staff engagements

2

Collaborative engagements

1

Service provider engagements

0

14.3. Additional information [Optional].


LEA 15. Examples of ESG engagements

15.1. Provide examples of the engagements that your organisation or your service provider carried out during the reporting year.

Topic or ESG issue
          CDP water engagement
        
Conducted by
Objectives

Goal is at least 50 % increase in the coverage of CDP water risk data for companies in the MSCI ACWI in the focus sectors Utilities, mining and energy between CDP 2015 report and 2018 report.

Scope and Process

Together with PGGM we engaged 37 companies in the mining and energy sector to improve reporting trough CDP trough letters, ftf meetings and calls. We also spoke with IPIECA, the sector representative of the Oil & Gas sector.

Outcomes
  • Utilities: response rate 2015 report= 28%, response rate 2016 report = 39%
  • Energy response rate 2015 report= 22%, response rate 2016 report = 29%
  • Mining response rate 2015 report= 43%, response rate 2016 report = 54%

We selected the most persistent non-responders for our engagement. Thus far, one one the engaged companies has responded.

Topic or ESG issue
          Diversifying protein supply chains
        
Conducted by
Objectives
  • Plans to promote alternative sources of protein through product placement, appealing packaging, improved labelling or other ‘choice architecture’ techniques.
  • Plans to ensure sustainably sourced and alternative protein products are affordably priced to be competitive with intensively-reared livestock products.
  • Investment in product reformulation to explore opportunities to reduce animal-based ingredients in favor of more sustainable sources of protein.
  • Investment in consumer education to raise awareness of the environmental and health benefits of diets based less on animal sources and more on plant proteins.
Scope and Process

More than forty institutions with collectively more than $1.25 trillion AUM have joined this initiative. 16 companies have been targeted.

Outcomes

Mixed responses.Unilever has shown good progression on this topic. Others are acknowledging the importance but very much in first stages.

Topic or ESG issue
          Antibiotics engagement
        
Conducted by
Objectives

Phase out the routine, preventive use of antibiotics in their supply chain.

Scope and Process

Companies that are the focus of the investor engagement on antibiotics: Brinker International,  Domino’s Pizza Group, McDonald’s Corporation, Mitchells and Butlers, Restaurant Brands International, The Restaurant Group, Wendy’s, JD Wetherspoon, Yum! Brands., 61 investors with over US$1.3 trillion of assets under management. FAIRR is in the lead with the company engagements

Outcomes
  • The Restaurant Group (including brands such as Frankie & Benny’s and Garfunkel’s)has committed to take steps to phase out the routine, preventative use of antibiotics in their supply chain and to refine its use of antibiotics classed as ‘critically important’ by the World Health Organization.
  • More than half of the companies approached by the investor group report that their usage of antibiotics is under review or they are considering changes. All companies approached by the investors responded.
Topic or ESG issue
          Energy transition
        
Conducted by
Objectives

We started responsive engagement with 18 companies in 2016, based on their exposure to coal mining, coal power generation, shale gas/oil, oil sands and/or nuclear energy.

Scope and Process

We started with the first group of companies in 2016 (more in scope). The goal is to confirm our information and get understanding from the company of how they want to contribute to the energy transition and how they plan to make the company resilient for a max. 2 degree scenario. 

Outcomes

8 companies responded promptly: Alliant Energy Corporation, American Electric Power Co., Canadian Natural Resources Limited, Chugoku Electric Power Co., CLP Holdings, Imperial Oil, WEC Energy Group, Glencore, Marathon oil. We managed to organise a call with Suncor and Pioneer at a later stage. 4 companies were hard to get a hold of but we are hopeful to plan a meeting: Continental Resources, FirstEnergy Corp, Hopewell Holdings, PPL Corporation. Depending on the responsiveness, strategy and developments we will keep engaging the companies or advise exclusion.

Topic or ESG issue
          Carbon emissions
        
Conducted by
Objectives

Managing carbon emissions and disclosure (through CDP)

Scope and Process

We initiated engagement and 3 other investors joined us. We addressed 17 companies.

Outcomes

Engagement started in 2015, soon after the emissions fraude was made public, which shifted focus. However, a succes was that one of the auto companies made its response to CDP public, where it was previously private.

Topic or ESG issue
          Palm oil
        
Conducted by
Objectives

Implementation of no deforestation, no peat, no exploitation policy

Scope and Process

Collaborative engagement, we were lead on 2 companies (Wilmar and Golden Agri Resources).

Outcomes

Companies published GPS coordinates of plantations and of their suppliers.

15.2. Additional information. [Optional]


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