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Northern Ireland Local Government Officers' Superannuation Committee

PRI reporting framework 2018

You are in Direct - Listed Equity Active Ownership » Engagement

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. Attach or provide a URL to your engagement policy.

01.3. Indicate what your engagement policy covers:

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

NILGOSC acknowledges that good environmental, social and corporate governance (ESG) practices can have a favourable impact both on financial performance and society in general. Accordingly, NILGOSC requires its active investment managers to monitor best practice in this area and ensure that ESG considerations, where relevant, are taken into account in the investment management process. All active fund managers are instructed to engage, on NILGOSC’s behalf, with those companies where ESG policies fall short of acceptable standards and where this is likely to have a detrimental effect on the long-term value of the company.

In 2010 NILGOSC also commenced direct engagement with the UK companies in which it holds shares. NILGOSC writes to all UK listed companies when it has voted against resolutions at the Annual General Meeting (AGM) to outline the rationale for the decision. NILGOSC aims to write to these companies in advance of the meetings to make the engagement as effective as possible. In January 2015, NILGOSC began issuing engagement letters to other European listed companies, as well.

NILGOSC aims to promote effective stewardship and engagement with companies by participating in collaborative engagements and initiatives, with UNPRI signatories through the UNPRI collaboration platform or with other investor groups

01.6. 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]


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]

NILGOSC writes to all UK and other European listed companies when it has voted against resolutions at the Annual General Meeting (AGM) to outline the rationale for the decision. NILGOSC aims to write to these companies in advance of the meetings whenever possible.


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 during and following your engagements activities carried out by internal staff.

04.3. Indicate if you do any of the following to monitor and evaluate the progress of your engagement activities carried out by internal staff.

other description

          Company responses recorded and progress reviewed before future meetings to inform voting decisions and/or continued engagement.
        

04.4. Additional information. [Optional]

For all votes against management at UK and other European listed companies' AGMs, NILGOSC writes to outline the rationale for the decision. If a response is received before the meeting, the information may be used to inform voting decisions. If a response is received after the meeting, the response will be noted and reviewed before any future meetings. Where a company has indicated that future improvements will be made, progress will be reviewed and used to inform voting decisions and/or continued engagement.


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

          Fund exposure, compatibility with NILGOSC's responsible investment policies and resources required
        

05.3. Additional information [Optional]

Collaborative engagements are identified through the PRI or other organisations such as the CDP or the UK Pension Fund Responsible Investment Roundtable. The decision on whether to participate is based on fund exposure, compatibility with NILGOSC's responsible investment policies and resources required, and is approved by the Investment Services Manager and Deputy Secretary.


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 during and following your collaborative engagements.

06.3. Indicate if you do any of the following to monitor and evaluate the progress of your collaborative engagement activities.

06.4. Additional information. [Optional]

NILGOSC participated in two relevant collaborative engagements through UNPRI, both of which have set goals and timelines. Meetings took place regularly and progress was tracked through updates from members.

For LAPFF-initiated engagements, progress was monitored by the service provider and progress reports  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’.

 


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.

07.3. Additional information. [Optional]


LEA 08. Monitor / discuss service provider information

08.1. Do you monitor and review the outcomes of the engagement activities undertaken by your service providers on your behalf?

Please select all that apply

08.2. Additional information. [Optional]

NILGOSC monitors the progress of LAPFF engagements by means of the LAPFF Quarterly Engagement Report


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]


LEA 10. Tracking number of engagements

10.1. Indicate if you track the number of your engagement activities.

Type of engagement
Tracking engagements

Individual / Internal staff engagements

Collaborative engagements

Service provider engagements

10.2. Additional information. [OPTIONAL]

NILGOSC tracks the number of companies engaged with directly by NILGOSC staff, copies of all correspondence are saved, and this information is reported annually.

Collaborative engagements, such as UNPRI facilitated engagements, are also tracked.


Outputs and outcomes

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


LEA 12. Engagement methods (Private)


LEA 13. Companies changing practices / behaviour following engagement (Private)


LEA 14. Examples of ESG engagements (Not Completed)


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