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Strathclyde Pension Fund

PRI reporting framework 2017

You are in Direct - Listed Equity Active Ownership » Engagement » Process

Process

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]


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.

04.5. Additional information. [Optional]


Process for engagements conducted via collaborations

LEA 05. Process for identifying and prioritising collaborative engagement

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

05.1. Indicate whether your organisation has a formal process for identifying and prioritising collaborative engagements

05.2. Describe the criteria used to identify and prioritise collaborative engagements

other description

          As a follow-up from a voting decision
        

05.3. Additional information [Optional]

The Fund is committed to a rnage of initiatives and engagement threads through its retaining of Global Engagement Services (GES). GES runs a range of thematic engagments which the Fund is committed too including water, carbon and child labour.

The LAPFF Executive Committee gathers input from the members and the primary service provider and advises on what engagement collaborations to pursue and prioritise.

Where a significant number of LAPFF funds hold a company, where LAPFF funds hold a large percentage of the company or a priority issue has been identified, LAPFF will seek to engage with the relevant company.

 


LEA 06. Objectives for engagement activities

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

06.1. Indicate if you define specific objectives for your engagement activities carried out collaboratively.

06.2. Indicate if you monitor the actions companies take following your collaborative engagements.

06.3. Indicate whether your organisation defines milestones and goals related to engagement activities carried out via collaborations.

06.5. Additional information. [Optional]

The GES engagement model follows a systematic and structured process. The quarterly GES report to the Fund provides full transparency of engagements and progress. The Fund will report this through the quarterly RI reports. The Fund's investment manager's are expected to provide outcomes to engagement which maybe reported via GES but often by the manager individually. They, like GES, provide an RI report to the Fund which is used to discuss cases and detail progress. GES also provide a dedicated engagement progress report on an annual basis. This is a table of target companies with information on the previous years engagement and the state of progress.

The fund is careful to lend its voice to collaborative work that is structured and that offers clear objectives.

It is typical for the collaborative work to be done over an extended period of time with outcomes requiring patience and flexibility.

The Fund either directly or through GES will monitor and report outcomes.

For LAPFF-initiated engagements, progress is monitored by the service provider and progress reports are provided to members in the form of the Quarterly Engagement Report. Before each engagement meeting LAPFF sets out two or three objectives, then following the meeting an indication is provided of whether these objectives were achieved and if so how. An assessment is provided of progress, ranging from ‘no progress’ to ’substantial improvement’.

For other collaborative engagements, LAPFF will monitor companies for progress where LAPFF has a direct engagement interest or ongoing relationship with that company. For companies where LAPFF does not have a direct relationship, we allow other collaborators to evaluate company progress and report back.

 


Process for engagements conducted with/on your behalf by service providers

LEA 07. Role in engagement process

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

07.1. Indicate if you play a role in the engagement process that your service provider conducts on your behalf.

07.2. Indicate the role(s) you play in engagements that your service provider conducts on your behalf.

07.3. Additional information. [Optional]

The Fund will require the service providers (investment managers) to support its engagement work in themes, sectors and companies identified by the engagement overlay provider. In that case the issues, objectives and the selection of the companies will provided to the service provider. Ther service providers are also expected to carry out engagements and other RI work on their own inititative.

SPF devotes significant resource to responsible investment activity. This includes: internal resource and expertise; dedicated resource within the Fund’s external investment managers; retention of Global Engagement Services (GES)

As a LAPFF member, we have an opportunity to suggest topics or companies for engagement. The Executive Committee makes the decision on whether or not to go forward with an engagement suggested by a LAPFF member. LAPFF’s progress is actively monitored and reviewed at each quarterly Business Meeting. In addition, the Executive Committee assesses the performance of LAPFF’s primary service provider annually.

As an organisation with a member on the LAPFF Executive Committee, our fund is able to participate directly in engagement meetings with companies.


LEA 08. Monitor / discuss service provider information

08.1. Indicate whether you monitor and/or discuss the following information provided to you by your service provider

Please select all that apply

08.2. Additional information. [Optional]

The Fund receives a quarterly and annual report on progress from GES.

The Fund recieves quarterly ESG reports from its investment managers

Our fund monitors the progress of LAPFF on the topics listed above by means of the quarterly Business Meeting


General processes for all three groups of engagers

LEA 09. Share insights from engagements with internal/external managers

09.1. Indicate if insights gained from your engagements are shared with your internal or external investment managers.

Type of engagement

Insights shared

Individual/Internal staff engagements

Collaborative engagements

Service provider engagements

09.2. Additional information. [Optional]

The investment managers are partners in the GES lead collaborative engagement and have full access to the GES research and engagement outcomes. The managers are kept informed of engagement work carried out directly by GES and are expected to monitor the quarterly Fund RI reports to understand the full picture.

Officers of the Fund and GES meet with each investment manager semi annually to discuss portfolio monitoring of global compact norm breaches, engagements, voting and ESG integration in the investment process.


LEA 10. Tracking number of engagements

10.1. Indicate if you track the number of engagements your organisation participates in.

Type of engagement
Tracking engagements

Individual / Internal staff engagements

Collaborative engagements

Service provider engagements

10.2. Additional information. [OPTIONAL]

The investment managers provide full and detailed quarterly reports of the engagement work undertaken with the Fund's portfolio companies. The engagements are then reported through the Funds RI reporting. The GES engagement model follows a systematic and structured process. GES also provide a dedicated engagement progress report on a quarterly basis. The GES annual engagement progress report provides a table of target companies with information on the previous years engagement and the state of progress. Officers report in detail all their engagement work through the Fund's quarterly RI reports.

LAPFF tracks the number of companies that it engages with directly and reports this quarterly as well as annually. All incoming and outgoing correspondence as well as all meetings and phone calls with companies are saved and recorded, allowing LAPFF to  provide accurate and comparable statistics on number and type of engagements year on year.

For collaborative engagements, LAPFF endeavors to track how many companies it reaches. However, the number of companies where the number of companies contacted numbers into the hundreds in a collaborative engagement is not systematically tracked.


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