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KLP

PRI reporting framework 2019

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You are in Direct - Listed Equity Active Ownership » (Proxy) voting and shareholder resolutions

(Proxy) voting and shareholder resolutions

LEA 12. Typical approach to (proxy) voting decisions

12.1. Indicate how you typically make your (proxy) voting decisions.

Approach

Based on

12.2. Provide an overview of how you ensure your voting policy is adhered to, giving details of your approach when exceptions to the policy are made.

For Norwegian-listed firms, KLP's proxy voting service provider completes an analysis of each meeting according to KLP and the KLP Mutual Funds' voting guidelines. The KLP responsible investment department and relevant asset managers review the assessment and agrees on the voting. KLP votes through the online proxy voting platform as a general rule, but may vote in person when appropriate.

For firms listed outside of Norway, KLP votes in line with the proxy voting service provider's socially responsible investment voting policy, which is substantially aligned with the KLP voting guidelines. KLP receives a regular alert of meetings with environmental and social proposals on the agenda and retains the ability to override the service provider policy if desirable. KLP did not see the need to override the default policy during 2018. KLP votes on AGMs and EGMs for over 6 000 companies. 

12.3. Additional information.[Optional]

For Norwegian listed companies, KLP determines voting based on in-house research. For voting in companies listed outside of Norway, KLP relies primarily on an external service provider.


LEA 13. Percentage of voting recommendations reviewed (Not Applicable)


LEA 14. Securities lending programme

14.1. Indicate if your organisation has a securities lending programme.

14.3. Indicate how voting is addressed in your securities lending programme.

14.4. Additional information.

KLP never lend out all shares so that we are able to vote on all AGMs and EGMs. We also reserve the right to recall securities on AGMs or EGMs where we asess that it is important to vote for all holdings. 


LEA 15. Informing companies of the rationale of abstaining/voting against management

15.1. Indicate the proportion of votes where you or the service providers acting on your behalf have raised concerns with companies ahead of voting.

15.2. Indicate the reasons for raising your concerns with these companies ahead of voting.

15.3. Additional information. [Optional]

Our voting record is available on our website. For the Norwegian market, we include the rational for votes against ballot proposals as well. We raise concerns with companies in our home market (Oslo Børs) directly when we lack information or otherwise might vote against or abstain from a ballot proposal when the rationale might not be obvious or for particularly controversial ballot proposals. 


LEA 16. Informing companies of the rationale of abstaining/voting against management

16.1. Indicate the proportion of votes participated in within the reporting year in which, you and/or the service provider(s) acting on your behalf, have communicated to companies the rationale for abstaining or voting against management recommendations.

16.2. Indicate the reasons your organisation would communicate to companies, the rationale for abstaining or voting against management recommendations.

16.3. In cases where your organisation does communicate the rationale for the abstention or the vote against management recommendations, indicate whether this rationale is made public.

16.4. Additional information. [Optional]

KLP reaches out  to companies in our home market (Oslo Børs) before the AGM-season to inform about our guidelines for voting and how we voted for the companies proposal in the previous year. 


LEA 17. Percentage of (proxy) votes cast

17.1. For listed equities where you and/or your service provider have the mandate to issue (proxy) voting instructions, indicate the percentage of votes cast during the reporting year.

Votes cast (to the nearest 1%)

97 %

Specify the basis on which this percentage is calculated

17.2. Explain your reason(s) for not voting on certain holdings

17.3. Additional information. [Optional]


LEA 18. Proportion of ballot items that were for/against/abstentions

18.1. Indicate if you track the voting instructions that you and/or your service provider on your behalf have issued.

18.2. Of the voting instructions that you and/or third parties on your behalf issued, indicate the proportion of ballot items that were:

Voting instructions
Breakdown as percentage of votes cast
For (supporting) management recommendations
82 %
Against (opposing) management recommendations
18 %
Abstentions
0.00 %
100%

18.3. In cases where your organisation voted against management recommendations, indicate the percentage of companies you have engaged.

18.4. Additional information. [Optional]

We do not track the information requested under LEA 18.3.


LEA 19. Proportion of ballot items that were for/against/abstentions

19.1. Indicate whether your organisation has a formal escalation strategy following unsuccessful voting.

19.3. Additional information. [Optional]


LEA 20. Shareholder resolutions

20.1. Indicate if your organisation directly or through a service provider filed or co-filed any ESG shareholder resolutions during the reporting year.

20.6. Describe whether your organisation reviews ESG shareholder resolutions filed by other investors.

We systematically review all shareholder proposals in the Norwegian market. For the international AGMs we have set up an alert for ESG items on the agenda to follow our votes on these items.

The ISS SRI policy states: Social and Environmental Proposals Social Advisory Services Recommendation: Generally vote in favor of social and environmental proposals that seek to promote good corporate citizenship while enhancing long-term shareholder and stakeholder value. 

20.7. Additional information. [Optional]


LEA 21. Examples of (proxy) voting activities

21.1. Provide examples of the (proxy) voting activities that your organisation and/or service provider carried out during the reporting year.

ESG Topic
Other governance
Conducted by
Objectives

We have consistently voted against or abstain when it comes to bundling in the Norwegian market. 

Scope and Process

All companies in the Norwegian market. Companies are usually informed in advance to give them time to change the agenda. 

Outcomes
ESG Topic
Climate Change
Conducted by
Objectives

Company reporting on climate change policies. 

Scope and Process

ISS SRI policy states that: Generally vote for social and environmental shareholder proposals that seek greater disclosure on topics such as human/labor rights, workplace safety, environmental practices and climate change risk, sustainable business practices etc. 

Outcomes

21.2. Additional information. [Optional]


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