The Fund was directly involved in significant collaborative engagment including ShareActions Living Wage campaign, the RE100 renewable energy initiative and the FAIRR farm Animal Welfare initiative. These three alone saw significant numbers of companies either changing or pledging to change policies, procedures and/or business preactice following the engagment. I have suggested a number of 50 but in relaity the number will be well in excess of that. The Re100 collaborative engagment alone has 89 RE100 companies making a commitment to go '100% renewable'.
The Fund's quarterly RI report includes a section on executive remuneration voting and engagement. The engagement section details many occassions of companies changing policy and actions as a result of engagement with the Fund's managers and GES. Officers will also provide input.
GES have a record of helping deliver change at portfolio companies, this list is added to every year. For example:
GES met with Harmony Gold in South Africa and discussed Health & Safety (H&S) management in combination with other topics. The company was responsive and has taken actions in the H&S area.
GES continuously engaged with Olam and the wider cocoa industry in 2016. In October, GES travelled to Côte d’Ivoire to visit a cocoa growing community and to participate in a conference on sustainable cocoa farming. Olam has strengthened its efforts by rolling out child labour monitoring and remediation systems in its supply chain.
Cemex (Mexico) Several meetings have been held during the year including in Mexico. The company now has in place policies and programs with the necessary components, including respect for international law.
LAPFF assesses the outcomes of each company engagement. There are substantially more engagements than number of companies engaged with because LAPFF engaged with a number of companies more than once during the reporting period.The performance for the reporting period is as follows.
Satisfactory response – 9
Change in process – 6
Moderate improvement – 11
Substantial improvement – 9
Dialogue – 84
Small improvement – 6
Awaiting response –11
No Improvement - 1
It is estimated that LAPFF engagement helped to foster improvements at 35 companies.
LAPFF maintains a reliable estimate of the number of cases during the reporting year in which a company changed its practices or made formal commitment to do so. After each engagement, LAPFF records the engagement outcome according to the categories set out above.