We raised with management that a Red Line had been triggered and the vote recommendation was to vote "AGAINST". Whilst we did not vote in line with the vote recommendation, we do believe the company should consider creating a climate change committee. In Q2 2018 the company management requested a meeting to discuss ESG and the issues that were sensitive to clients. The CEO attended the meeting.
A discussion was had on the increasing sensitivity to climate change and that shareholders are looking to management to disclose how they intend to monitor their impact.
This provides an example of how Red Lines can be most effective. Some are arguably blunt and they should not be applied blindly without detailed consideration. We certainly do not use them in that way. We believe working with management is a far more effect way of preserving relationships and instigating change.