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ClearBridge Investments

PRI reporting framework 2019

You are in Organisational Overview » Asset class implementation gateway indicators

Asset class implementation gateway indicators

OO 10. Active ownership practices for listed assets

10.1. Select the active ownership activities your organisation implemented in the reporting year.

Listed equity – engagement

Listed equity – voting

OO 11. ESG incorporation practices for all assets

11.1. Select the internally managed asset classes in which you addressed ESG incorporation into your investment decisions and/or your active ownership practices (during the reporting year).

Listed equity

OO 12. Modules and sections required to complete

12.1. Below are all applicable modules or sections you may report on. Those which are mandatory to report (asset classes representing 10% or more of your AUM) are already ticked and read-only. Those which are voluntary to report on can be opted into by ticking the box.

Core modules

RI implementation directly or via service providers

Direct - Listed Equity incorporation

Direct - Listed Equity active ownership

RI implementation via external managers

Closing module

12.2. Additional information. [Optional]

ClearBridge has 50 years of history in active listed equites investment management. One of ClearBridge’s hallmarks is its ESG Investment Program, which integrates ESG principles, active company engagement and shareholder advocacy within our investment strategies.  In 1987 the Firm established one of Wall Street’s first structured social investment programs. Our active equity ESG strategies have long-term performance track records that reflect competitive risk-adjusted returns over various market cycles.

Through its ESG Investment Program, ClearBridge is committed to helping investors integrate and realize their financial and sustainable investment goals, and ClearBridge maintains an overarching view of ESG issues through its ESG Investment Program, which encompasses all of its strategies. The Firm believes companies with positive ESG attributes will likely outperform their peers over the long term; conversely, companies with negative ESG characteristics might represent significant risk to shareholder value.  We believe ESG analysis is integral to understanding the fundamentals of a business, leading to a broader view of companies and industries and contributing to better investment decisions, and that active ownership (active proxy voting and engagement with companies to improve ESG practices) is an essential aspect of active investment management.

The Firm integrates proprietary ESG research into all its portfolios. The ClearBridge Sustainability Leaders Strategy invests in companies that meet our robust investment criteria and demonstrate high sustainability leadership characteristics, while intentionally maintaining a low carbon footprint. Additionally, ClearBridge has an ESG rating for companies representing 93% of our assets under management. For all strategies, ClearBridge continually seeks to identify and maximize impact through its public equity ownership where possible. The Firm believes that most of the UN Sustainable Development Goals (SDGs), among other impact indicators, can be incorporated into its long-term investment view. We have also embarked on measuring the carbon intensity level of our firm’s full assets under management relative to a global benchmark, and have incorporated thinking around the TFCD guidelines.

ClearBridge’s Chief Executive Officer, co-Chief Investment Officers and Head of Research strongly support the Firm's ESG approach; one of the co-CIOs co-manages an ESG strategy. The Firm’s head of Fundamental Research also has sector coverage with ESG responsibilities. ClearBridge has included ESG research integration as part of our fundamental Sector Analyst responsibilities and as a formal part of their compensation structure and semi-annual performance reviews. All Analysts assign a proprietary ESG rating to every company under their coverage across the Firm and actively participate in direct company engagement.