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Genesis Investment Management, LLP

PRI reporting framework 2018

Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - INF 03]

Strategy and Governance

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Innovation [SG 18] Communication [SG 19]

Direct - Listed Equity Incorporation

ESG incorporation in actively managed listed equities [LEI 01 - 10] Implementation processes [LEI 01 - 10] (C) Implementation: Integration of ESG issues [LEI 08 - 10] Outputs and outcomes [LEI 12 - 14]

Direct - Listed Equity Active Ownership

Engagement [LEA 01 - 14] Overview [LEA 01 - 02] Process for engagements run internally [LEA 03 - 04] Process for engagements conducted via collaborations [LEA 05 - 06] General processes for all three groups of engagers [LEA 09 - 10] Outputs and outcomes [LEA 11 - 14] (Proxy) voting and shareholder resolutions [LEA 15 - 24] Overview [LEA 15] Process [LEA 16 - 20] Outputs and outcomes [LEA 21 - 24]

Assurance

Assurance [CM1 01.1 - 01.7]

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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.

Yes

03.2. Describe the criteria used to identify and prioritise engagement activities carried out by internal staff.

Geography / market of the companies

Materiality of ESG factors

Systemic risks to global portfolios

Exposure (holdings)

In response to ESG impacts that have already occurred.

As a response to divestment pressure

Consultation with clients/beneficiaries

Consultation with other stakeholders (i.e. NGOs, trade unions etc.)

As a follow-up from a voting decision

Client request

Other, describe

other description

          Engagement issues (ESG and others) are based on materiality to long-term shareholder value. The priorities for such interactions are tailored to each company.

03.3. Additional information. [Optional]

Genesis views engagement as the purposeful communication with company management on a wide range of matters which have a material impact on long-term shareholder value including strategy, capital structure, performance, risk and corporate governance.The priorities for engagements are tailored to each company by the stock owner and reflect their view of the current and future prospects of the particular company as a position in client portfolios. The stock owner records the details of company engagements in a central database which allows information and expertise to be shared across the Investment Team.

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.

Yes

Yes, for all engagement activities

Yes, for the majority of engagement activities

Yes, for a minority of engagement activities

We do not define specific objectives for engagement activities carried out by internal staff.

04.2. Indicate if you monitor the actions that companies take during and following your engagements activities carried out by internal staff.

Yes

Yes, in all cases

Yes, in the majority of cases

Yes, in the minority of cases

We do not monitor the actions that companies take following engagement 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.

Define timelines for your objectives

Tracking and/or monitoring progress against defined objectives

Tracking and or monitoring progress of actions taken when original objectives are not met

Revisit and, if necessary, revise objectives on continuous basis

Other, please specify

other description

          Monitoring, timelines and/or objectives are specific to each company and determined by the portfolio manager.  Not all engagements necessitate concrete objectives.

We do not monitor and evaluate progress of engagement activities carried out by internal staff

04.4. Additional information. [Optional]

Engagement activities are an integral research tool used to inform the overall investment and proxy voting process with respect to such company. The objectives of all engagements with companies are tailored to the specific company.

Our aim is to build long-term relationships with companies and have frank and constructive communications with them. As a result we have a strong preference that such engagement activities remain private.

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

Yes

05.3. Additional information [Optional]

Collaborative engagement opportunities are evaluated on a case-by-case basis.

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.

Yes

Yes, for all engagement activities

Yes, for the majority of engagement activities

Yes, for a minority of engagement activities

We do not define specific objectives for engagement activities carried out collaboratively.

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

Yes

Yes, in all cases

Yes, in the majority of cases

Yes, in the minority of cases

We do not monitor the actions that companies take following engagement activities carried out collaboratively

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

Define timelines for your objectives

Tracking and/or monitoring progress against defined objectives

Tracking and or monitoring progress of actions taken when original objectives are not met

Revisit and, if necessary, revise objectives on continuous basis

Other, please specify

We do not monitor and evaluate progress of engagement activities carried out by internal staff

06.4. Additional information. [Optional]

As noted, collaborative engagements are the exception.

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

LEA 07. Role in engagement process (Not Applicable)

LEA 08. Monitor / discuss service provider information (Not Applicable)

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	Yes, systematically Yes, occasionally No
Collaborative engagements	Yes, systematically Yes, occasionally No

09.2. Additional information. [Optional]

Internal communication and interaction between team members, either as a large group or (more frequently) in smaller groups of two or three, is key to the success of our process.

We maintain a central database for all notes from meetings with company management. This is available to all members of the Investment Team.

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	Yes, we track the number of our engagements in full Yes, we partially track the number of our engagements We do not track
Collaborative engagements	Yes, we track the number of our engagements in full Yes, we partially track the number of our engagements We do not track and cannot estimate our engagements

10.2. Additional information. [OPTIONAL]

We maintain notes on all material interactions with investee companies. These are available to the full Investment Team. As noted, we interact with company management on a variety of issues which are not limited to meetings to influence (or identify the need to influence) ESG practices and/or improve ESG disclosure. These notes are referred to by the portfolio manager on a regular basis for monitoring company performance and analysis.

We do not currently track ESG interactions as a subset of all interactions with companies. Typically ESG issues are covered in conjunction with other material matters.

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