This report shows public data only. Is this your organisation? If so, login here to view your full report.

Wellington Management Company LLP

PRI reporting framework 2018

Export Public Responses
Pdf-img

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Investor engagement (number of portfolio teams and frequency who request portfolio reviews); Portfolio implications (buy/sell) where ESG issues informed the decision
        

Progress achieved

Our ESG Research team, part of the central Investment Research function, helps our portfolio managers and analysts gather deeper intelligence on ESG topics and integrate these considerations into the investment process. Our ESG analysts are responsible for conducting in-depth analysis of the ESG factors most relevant to the sectors within their coverage area and for conducting outreach with investors to deepen integration efforts. Our ESG team works closely with investment teams to incorporate our research into the investment process — regularly conducting in-depth portfolio reviews with investment teams to discuss holdings with the greatest ESG risks and strengths.

Key performance indicator

          Periodic emails to investors; investor engagement
        

Progress achieved

Just like integration, training on ESG engagement is an ongoing effort facilitated by the ESG Research team's outreach model. Nonetheless, there are several examples of broad investor education on engagement. One example of investor education during 2017 was completed in consultation with Wellington's Chief Information Security Officer and shared our perspectives about how to engage and assess a company's cybersecurity efforts. The ESG Research team also conducts an annual meeting to provide a proxy season preview, educate investors about the recent changes to regional governance codes, and discuss our approach to certain hot topics.

Key performance indicator

          Investor engagement (clicks) to ESG pages on research collaboration platform; investor engagement (responses, follow-up) to ESG Research monthly emails
        

Progress achieved

Starting in early 2017, investors and analysts can monitor changes to their portfolio companies in several internal systems, including Wellington’s central research collaboration platform. Each company within the ESG Research team’s coverage has a dedicated ESG page on this platform which shows an explanation of what is driving the company’s ratings, recent company engagements, and proxy voting activity and history. This page also provides a historical view of the company’s rating over time, as well as identifies leaders and laggards based on its relevant peer set.

In the second half of 2017, the ESG Research team began sending a monthly internal email with summary stats of engagement activity, upcoming engagements with management and/or board members to attend, and summaries of sample engagements which occurred during the month.

Key performance indicator

          Tracked progress towards meeting engagement objectives
        

Progress achieved

In 2017, the ESG Research team implemented an engagement tracking tool to monitor progress of portfolio companies towards engagement objectives. 

As one example of the engagement objectives we are tracking, since the release of the final TCFD recommendations in June 2017, our ESG Research Team has been encouraging Wellington’s portfolio companies to adopt them as part of our engagement dialogue.

 

Key performance indicator

          Each of our portfolio managers develops their own ESG integration approach, so KPIs will vary across teams.
        

Progress achieved

Each of our portfolio managers develops their own investment approach whereby ESG considerations are integrated into their research and decision-making processes to the extent that they believe these issues may affect the long-term success of a company and investment returns. This can manifest itself within the investment thesis or portfolio weighting for a particular security, as well as within our proxy voting and company engagement efforts.

Financial performance of investments

ESG characteristics of investments

Key performance indicator

          Each of our portfolio managers develops their own ESG integration approach, so KPIs will vary across teams.
        

Progress achieved

Consistent with the objective of improved ESG incorporation into investment decision making processes, portfolio managers may express their views about the impact of ESG considerations relevant to their holdings in their investment decisions. Each of our portfolio managers develops their own investment approach whereby ESG considerations are integrated into their research and decision-making processes to the extent that they believe these issues may affect the long-term success of a company and investment returns. This can manifest itself within the investment thesis or portfolio weighting for a particular security, as well as within our proxy voting and company engagement efforts.

Key performance indicator

          Meeting client objectives.
        

Progress achieved

As required by specific client guidelines and objectives, we are able to manage portfolios in accordance to specific carbon reduction targets.

Other activities

Key performance indicator

          
        

Progress achieved

In January 2017, Wellington Management became a founding signatory of the Investor Stewardship Group’s (ISG’s) Framework for US Stewardship and Governance. The ISG is a collective of some of the largest US-based asset owners and asset managers, along with several of their international counterparts.

In March 2017, we signed the UN PRI Statement on ESG in credit ratings. In this initiative, the PRI is extending the application of its Principles for Responsible Investment, to which we are already a signatory, specifically to credit-rating agencies. By signing this statement, Wellington Management is expressing support for credit-rating agencies to further integrate ESG factors into their ratings and reiterating our commitment to ESG integration across our fixed income platform.

In December 2017, Wellington Management joined over 230 organizations in signing the Statement of Support for the Financial Stability Board’s (FSB’s) Task Force on Climate-related Financial Disclosures (TCFD).

Key performance indicator

          
        

Progress achieved

The ESG Research team maintains an ongoing library of the most effective company engagements as well as notable portfolio manager investment decisions to which ESG issues contributed.

Key performance indicator

          
        

Progress achieved

We include case studies to demonstrate engagement and ESG incorporation in our quarterly publication, the Global ESG Research update, which is available on the Insights section of our web site.

06.2. Additional information.


Top