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PRI reporting framework 2019

Export Public Responses

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LEA 02. Reasoning for interaction on ESG issues

Indicate the method of engagement, giving reasons for the interaction.

Type of engagement

Reason for interaction

Individual / Internal staff engagements
Collaborative engagements
Service provider engagements

02.4. Additional information. [Optional]

LEA 03. Process for identifying and prioritising engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagements.

Indicate the criteria used to identify and prioritise engagements for each type of engagement.
Type of engagement
Criteria used to identify/prioritise engagements
Individual / Internal engagements

Internal / Individual engagements


          We will contact companies in response to developments in reporting frameworks or Corporate Governance codes and communicate our expectations of best practice.
Collaborative engagements

Collaborative engagements

03.3. Additional information. [Optional]

Our engagement activities are prioritised based on our exposure to the individual companies, either by the total size of assets invested on behalf of clients or by the percentage of shares held and the materiality of the issue that we identify.

As part of our analysis of companies, we track areas of performance, including companies' management of key ESG areas. If we feel we do not have enough information on this, or have identified gaps in companies' awareness or management of their ESG risks and opportunities, we establish dialogue with that company. Our equity, fixed income, ESG and data teams frequently work together to identify areas that warrant discussion with companies.  This may happen pre or post the decision to invest, and will feed into the investment decision. 

We also undertake re-active engagement as a result of any controversy involving a company, in order to understand why it may have occurred, the actions the company is taking as a result, and what the current and future investment risks may be.

Finally, to ensure that we consider all potential ESG concerns, we examine the external ESG ratings for our portfolios on a quarterly basis. Companies with a downward trend in ratings may indicate potentially higher ESG risk and therefore be flagged up for further engagement.

We have tracked all of our engagement activity through our internal ESG database since 2000. This enables us to assess if companies have responded to our requests for change. Our data shows us that on average it takes two years to effect change, but we have historically had a high level of success. This data base also flags engagements that are due for review and follow up, which we hope will increase our success rate.

We report publically on the success of our engagement activity over time. Please see our annual sustainable investment report for detailed information on our engagement progress at

LEA 04. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.
Indicate whether you define specific objectives for your organisation’s engagement activities.
Individual / Internal engagements
Collaborative engagements

04.2. Additional information. [Optional]

We monitor progress against our engagement requests annually. For example, following an engagement with a company in Q1 2018, we review progress 12 months later in Q1 2019, and record any progress in our engagement database. This progress is reported to clients company-by-company within our quarterly reports. We then review any outstanding engagement requests on an ongoing basis.  This is a key objective for all team members. 

We provide an update on our engagement progress in our quarterly and annual sustainable investment reports.

LEA 05. Process for identifying and prioritising collaborative engagement

Indicate if you monitor and/or review engagement outcomes.
Individual / Internal engagements
Collaborative engagements
Indicate if you do any of the following to monitor and review the progress of engagement activities.
Individual / Internal staff engagements
Collaborative engagements

05.3. Additional information [Optional]

Requests to enter a collaborative engagement process come through a variety of channels; ESG and financial analysts, Fund Managers, local investment associations, NGOs, other shareholders and occasionally clients. We have built up relationships as a result of our activities in this area and have a list of partners who we feel confident that we have alignment with. The ultimate decision about whether to proceed is taken by our Global Head of Stewardship, following the following framework:

  • Is the ESG issue raised material to the investment case?
  • Have internal Fund Managers and Analysts who own or cover the stocks been informed and are they comfortable with proceeding?
  • Is the proposed method of engagement and suggested remedy appropriate and will it prove to be effective? Is the partner credible?
  • Will their requests be made in a professional manner through appropriate channels and methods?

We will also seek advice from Schroders' compliance and legal teams or other local lawyers to ensure that we obey all market regulations. We are generally keen to avoid intentionally or unintentionally entering into concert parties or being in receipt of inside information.

LEA 06. Role in engagement process

06.1. Indicate whether your organisation has an escalation strategy when engagements are unsuccessful.

06.2. Indicate the escalation strategies used at your organisation following unsuccessful engagements.

06.3. Additional information. [Optional]

LEA 07. Share insights from engagements with internal/external managers

07.1. Indicate whether insights gained from your organisation's engagements are shared with investment decision-makers.

Type of engagement

Insights shared

Individual / Internal staff engagements

Collaborative engagements

07.2. Indicate the practices used to ensure information and insights collected through engagements are shared with investment decision-makers.

07.3. Indicate whether insights gained from your organisation’s engagements are shared with your clients/beneficiaries.

Type of engagement

Insights shared

Individual/Internal staff engagements

Collaborative engagements

07.4. Additional information. [Optional]

As a first step we consult with relevant investors pre engagement.  As a result they are often heavily involved in the engagement activity themselves, either joining meetings or co-authoring letters.

We share insights from our engagements on our global research platform.  This is accessible to all analysts and fund managers. We also include updates on engagements in our sector update emails and highlight upcoming engagements.  In addition, we have regular meetings on a regional basis that cover engagement and voting activity and identify themes and companies to engage with.  These involve senior investors and Sustainable Investment team members.

LEA 08. Tracking number of engagements

08.1. Indicate if you track the number of your engagement activities.

Type of engagement
Tracking engagements

Individual / Internal staff engagements

Collaborative engagements

08.2. Additional information. [OPTIONAL]

All individual and collaborative engagements undertaken by the Sustainable Investment team are recorded on our in-house ESG database. This database includes all engagements conducted since 2000, which allows us to monitor our engagement successes over the long term. We monitor progress against all engagement asks and rate engagement success on a scale of 'no change' to 'achieved'.

We report on our progress in our quarterly sustainable investment reports. These are published on our website (see and include details on the companies that we have engaged with and whether the issues discussed were environmental, social or governance-related. We also provide more in-depth case studies and publish details on our collaborative engagements. A more detailed version of our public quarterly report is sent to clients every quarter which includes information on the progress of individual company engagements.