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LocalTapiola Asset Management Ltd

PRI reporting framework 2017

Export Public Responses

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


LEA 01. Description of approach to engagement

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

01.1. Indicate whether your organisation has a formal engagement policy.

01.2. Indicate what your engagement policy covers:

          our engagements are mostly based on company-specific issues, we also complete engagements on specific themes through all our investments

01.3. Attach or provide a URL to your engagement policy. [Optional]

01.4. Provide a brief overview of your organization’s approach to engagement

Our engagement policy is a part of our RI process according to which the meetings with the management is the most important channel for engaging and influencing. Issues discussed with the management are mostly company specific and arise from company information and our own ESG analysis. Portfolio managers follow up how companies develop their processes and activities at regular meetings, by actively following the public information and by addressing specific issues by e-mails. We specifically target the companies with low ESG scoring.  Attention is given to development of KPI´s and how successful a company is in meeting its targets. In particular we look at company's ability to set more specific targets and to incorporate ESG into their strategy and throughout the entire value chain.

We also conduct engagements on a specific theme and in these cases we engage with all the companies we have invested in, if relevant. In 2015 and 2016 we have focused on environmental issues, e.g. reporting and interpreting carbon footprint information. Late 2016 we also sent an inquiry to all the companies that according to our knowledge do not report their emission, in order to encourage them to report in the future.

01.5. Additional information [optional]

LEA 02. Reasoning for interaction on ESG issues

02.1. Indicate the method of engagement, giving reasons for the interaction.

Type of engagement

Reason for interaction

Individual/Internal staff engagements

Collaborative engagements

Service provider engagements

02.2. Additional information. [Optional]

We implement active ownership through portfolio managers' meetings with company management. We usually meet with company executives and investor relations officers and address relevant ESG issues, arising from our in-house ESG analysis of the company in question. Our aim is to influence and promote responsible business practices through active dialogue. Issues that we raise depend on the company's operations, sector it operates in and other factors such as company's lack of disclosure, lack of targets or insufficient communication or control in ESG matters. We specifically target the companies that have received a poor ESG score in our in-house analysis, in order to encourage improved disclosure and to gain better understanding of company's actions.

We participate in collaborative engagements on a case by case basis, depending on our resources and investment exposure to the issues in question . During the first half of 2016 we were involved in collaborative engagement on Labour Standards in the Agricultural Suppy Chain, coordinated by PRI.