We adopt a positive engagement approach whereby we discuss ESG issues with the management of the companies in which we invest, or are considering investing, on behalf of our clients. We believe it is an advantage to us and our clients to build positive relationships with our investee companies as this enhances our ability to introduce constructive change where required.
We use the information gathered both to inform our investment decisions and also to encourage the company’s management to improve procedures and policies. We believe that this is the most effective way to improve corporate responsibility in our investee companies.
Although the investment team meets the companies on an ongoing basis, members of our ESG team also attend these company meetings when specific ESG issues are being addressed. They work with the investment team to determine the objectives of the engagement, how best to achieve them and then will ultimately discuss the results of the engagement with the investment team and any additional information relevant to our investment decision. Our ESG engagements are both proactive and reactive in nature and they are mostly are conducted with our current investee companies.
We provide our clients with engagement examples quarterly.