The answers above are related to engagement by the Governance & Active Ownership (GAO) team. "Materiality of ESG factors" is also used for CSA Engagement and conducted by the RobecoSAM Sustainability Investing Research team.
Robeco's selection of engagement themes and engagement cases is based on an annual selection process. Themes and cases are selected in close collaboration with our investment teams, our clients and RobecoSAM's sustainability investing research analysts. By combining RobecoSAM's in-house sustainability expertise with our active ownership practices, and feeding the results back to our equity and fixed income portfolio managers, we truly integrate engagement into sustainability investing - setting the standard for the financial industry. Robeco's Active Ownership services are used by a broad client base.
Material themes for our value engagements are determined in collaboration between Robeco's Active Ownership Team, portfolio managers, analysts and RobecoSAM's Sustainability Investing research team. The focus is on long-term, financially material ESG factors that can affect a companies' ability to create value. Before starting a theme, we also inform our institutional investor clients in our thought process and involve them in the selection and design of our engagement themes.
For any given engagement theme, companies are selected based on the highest exposure to the engagement topic. Sectors and client holdings are a further important input at this stage of the process.
Each of our themes is refined using baseline research on the engagement topic. This is used to establish the starting point for individual companies, to keep the engagement focused, and to efficiently address the most material ESG factors. For each company SMART (Specific, Measurable, Attainable, Relevant, Time-bound) engagement objectives are defined.
In addition to the proactive engagement selection process for our value engagement program, we select companies for our Enhanced Engagement process that severely and structurally breach principles of the United Nations Global Compact in the areas of human rights, labor, environment and anti-corruption
Within CSA Engagement our approach differs from more conventional engagement strategies in that we engage primarily with sustainability leaders as well as companies aspiring to become sustainability leaders. Companies approach us to engage in a dialogue on how to continuously improve their sustainability performance and benchmark themselves against their peers. These companies set high standards for their industry peers, which in turn puts competitive pressure on the laggards, leading to improvements of corporate practices across the industry as a whole. The CSA provides a platform for companies to identify new sustainability trends on financially material sustainability issues in their industry and benchmark their own performance over time against their peers.