We organised an educational event on climate change for the board members of the companies in which we invest. We felt many directors, especially outside of the resources sectors, lacked knowledge on the sizeable risks facing businesses across all sectors from climate transition risks. The internal tools we developed, such as the Climate Progress Dashboard and Carbon Value At Risk model, focus on the tangible business and profitability implications of climate change for companies in terms business leaders recognise and understand.
We explained our analysis of risks and opportunities, and the gap between winners and losers. We worked with CDP to clarify what disclosure would be helpful, in particular given the TCFD.
The event was an excellent chance to engage with board members. Most of our ESG engagements tend to be with investor relations employees or senior board members when many other board members feel they do not understand investors’ views. We received great feedback and several attendees have requested the materials to share with colleagues.
We will of course continue to evaluate our approach to both voting and engagement to ensure we foster the right culture of challenge and accountability on these increasingly important issues with investee companies.