As an investor, HMC recognizes that a company’s ability to identify and manage ESG risks effectively may affect its valuation. Therefore, engagement with companies plays an important role in our approach to sustainable investment. We select opportunities for engagement based on a number of factors, including the relevance of the ESG risks to shareholder value, risk management, and disclosure practices. Given the current asset allocation of the endowment, we believe the most impactful way to engage with publicly listed companies is through collaborative engagements, such as those organized by the UN PRI, where we can join voices with other asset managers and owners. In 2017 HMC joined the PRI’s global collaborative engagement on the management and disclosure of methane emissions as co-lead investor.