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Liontrust Investment Partners LLP

PRI reporting framework 2019

You are in Direct - Listed Equity Active Ownership » Engagement

エンゲージメント

LEA 02. Reasoning for interaction on ESG issues

エンゲージメントの方法および対話を行う理由を明示して下さい。
エンゲージメントの種類
対話を行う理由​
単独/貴社内のスタッフのエンゲージメント
協働的なエンゲージメント
サービスプロバイダーのエンゲージメント

02.4. 補足情報[任意]

Liontrust Investment teams regularly meet with management of their holdings via face to face meetings, telephone calls, site visits or capital market days.  In 2018, investment team members met with management of 520 global companies and engaged on matters such as company strategy, performance, risk, capital structure and corporate governance. The materiality and immediacy of a given issue will determine the nature of our engagement.

As part of the Sustainable team investment selection process, they hold regular meetings with the management of the companies to discuss strategy, sustainability and performance and to review management performance against best practice.  They identify areas of environmental, social and governance concerns using a range of resources including our own fundamental research. They believe that well-managed companies will report on material social and environmental risks and opportunities and explain how these are managed. As these are often not voting issues, they may engage directly with company management or the board where they believe there is the potential for a material impact on shareholder returns. They interact with a range of company representatives, which might include the Chairman or senior management and often also extends to experts heading up sustainability strategy or other core roles within an organisation. Ultimately, who they engage with will depend on the specific issue. 

Typically, direct engagement with companies is initiated by the team and most often arises from questions or concerns they have as a result of their initial analysis of ESG issues or from ongoing monitoring of investee companies on key sustainability issues or metrics. Investee companies are reviewed at least once every year, however, in practice this is done more frequently in line with reviewing stock investment thesis and valuation. They assess all controversies using data from external ESG research providers and, when necessary, engage on issues of concern. Engagement also arises at the request of a company, when they are invited to offer feedback or guidance on ESG policies and initiatives. 

In 2018, the Sustainable Investment team had 214 face to face meetings with companies where they raised 226 key environmental, social and governance (ESG) issues with companies over the year. 

Liontrust welcome discussions on all our holdings for collaborative engagement. 


LEA 03. Process for identifying and prioritising engagement activities

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。

03.1. 貴社にはエンゲージメントを特定し、優先順位を付けるための正式な手順がありますか。

各エンゲージメント種別の特定および優先順位付けに用いる基準を示してください。
エンゲージメント種別
エンゲージメントの特定/優先順位付けに用いる基準
単独/貴社内のスタッフのエンゲージメント

単独/貴社内のスタッフのエンゲージメント

協働的なエンゲージメント

協働的なエンゲージメント

03.3. 補足情報 [任意]

Liontrust currently adopt a case-by-case approach to engaging on material governance, environmental or social issues. We will engage with management in an appropriate manner this may be by conference call, letter or by seeking access to the board chair person or directors. Where we believe shareholder value is threatened or is not being realised, we may request that the board takes appropriate action. In most cases, a robust private dialogue with executive management, non-executive directors and company advisors is our preferred way to protect our clients’ interests. We will also engage with the chairperson of the board or the senior independent director where appropriate. If we receive an unsatisfactory response, we will assess to what extent this affects the overall investment decision. To protect our clients' assets, we would then look at options that might include publicly opposing management who refuse to act on our concerns or reducing our exposure or potential divestment.  

Our Sustainable Investment team use the following criteria to identify/prioritise engagements, which is outlined in their engagement policy which is available at https://www.liontrust.co.uk/what-we-offer/investment-processes/sustainable-future-process. 

Materiality of the ESG factors; exposure (size of holdings) where they broadly tend to engage only with investee companies; responses to ESG impacts that have already occurred, where they engage with companies where they have already had a dialogue; consultation with clients/beneficiaries; consultation with other stakeholders (e.g. NGOs, trade unions, etc.); follow-up from a voting decision, the team frequently contact companies to explain our voting rationale and communicate our voting policy; client request; breaches of international norms, the team are alerted to controversies including breaches of norms and will engage with companies and ensure they are responsive and proactive. They also consult with their Advisory Committee to identify and prioritise engagement annually.   

For collaborative engagements the team use the following criteria to identify/prioritise engagements:

Potential to enhance knowledge of ESG issues from other investors; ability to have greater impact on ESG issues; ability to add value to the collaboration; materiality of ESG factors addressed by the collaboration, where the team look at whether the engagement is aligned with that of our own priority initiatives; exposure (size of holdings) to companies targeted by the collaboration; consultation with clients/beneficiaries:  consultation with other stakeholders. They also consult with their Advisory Committee to identify and prioritise engagement annually.   

In consultation with the investment team's independent external advisory committee, the team identifies relevant overarching engagement priorities for the year. For 2018 the team agreed to engage with companies on the following issues: impact and sustainable development goals; encouraging sustainable use of plastics; anti-bribery & corruption; responsibility in apparel supply chains; promoting gender diversity: encouraging corporate tax responsibility; ensuring privacy & data security and value creation in the healthcare system.   


LEA 04. Objectives for engagement activities

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。
貴社のエンゲージメント活動に対して明確な目的を定義しているか示してください。
単独/貴社内のスタッフのエンゲージメント
協働的なエンゲージメント

04.2. 補足情報 [任意]

We believe monitoring and engagement are an essential part of being a shareholder in a company. It allows us to improve our understanding of investee companies and their governance structures so that our voting decisions may be better informed. The materiality and immediacy of a given issue will generally determine the level of our engagement.

To identify areas in which there are governance concerns, we use a range of resources including our own fundamental research. We hold regular meetings with the management of the companies in which we invest to discuss strategy, sustainability and performance, and to review management processes against the principles and best practice outlined above.

At a minimum, we would expect companies to comply with the accepted corporate governance standards in their domestic market or to explain why not doing so is in the interest of shareholders. We believe that well-managed companies will report on material social and environmental risks and opportunities and explain how these are managed. As these are not always voting issues, we may engage directly with company management or the board where we believe there is the potential for a material impact on shareholder returns.

We adopt a case-by-case approach to engaging on material governance, environmental or social issues. We will engage with management in an appropriate manner and make a record of this engagement – this may be by conference call, letter or by seeking access to the board chair person or directors.

Where we believe shareholder value is threatened or is not being realised, we may request that the board takes appropriate action. In most cases, a robust private dialogue with executive management, non-executive directors and company advisors is our preferred way to protect our clients’ interests. We will also engage with the chairperson of the board or the senior independent director where appropriate. If we receive an unsatisfactory response, we may liaise with other shareholders to discuss joint intervention or publicly oppose management who refuse to act on our concerns or where appropriate we may sell the shares to protect our clients’ assets.

We also aim to participate in collaborative engagement where appropriate.

As part of remuneration, each analyst on the Sustainable Investment team have pre-agreed engagement objectives every year. Eg. One analyst would be involved with the PRI Engagement on Cyber Security, another analyst would be involved with the PRI Sustainable Palm Oil Investor working Group. Their performance is assessed against these objectives.

The Sustainable Investment approach is one of full integration of ESG issues into investment decisions. They do not have separate fund management and ESG teams; instead every investment team member is responsible for all aspects of financial and ESG factors relating to the investment decision. Team members are responsible for clearly defined sectors and cover stocks within their respective sector. Each team member has responsibility for monitoring the major trends and themes in their sector, identifying investment opportunities, assessing the ESG performance of those opportunities, integrating that information into forecast earnings and valuation, submitting investment recommendations for their funds, engaging with companies and subsequently conducting all proxy voting for investee companies. Because of this integrated approach, investment team members engage with companies across a broad range of issues relating to steps in our investment process e.g. screening criteria, sustainable investment themes and company-specific environmental, social and governance issues.

The team have developed this approach for more than 18 years that they have been investing responsibly as they believe it is the best way to deliver investment performance. The team's track record strongly supports this view.


LEA 05. Process for identifying and prioritising collaborative engagement

エンゲージメントの成果についてモニタリングまたは検討を行っているか示してください。
単独/貴社内のスタッフのエンゲージメント
協働的なエンゲージメント
エンゲージメント活動の進捗状況のモニタリングまたは検討を行うため、以下を行っているか示してください。
単独/貴社内のスタッフのエンゲージメント
協働的なエンゲージメント

05.3. 補足情報[任意]

The Sustainable Investment team assess progress against proactive engagement priorities at monthly dedicated engagement meetings. Details of meetings and correspondence with company management are recorded internally on a database as are outcomes from collaborative engagement. The teams' Advisory Committee are updated on their engagement activity at each Advisory Committee meeting which occurs three times per year. 

For company-specific engagement that is more reactive in nature the team identify the person(s) most able to deal with our concerns or queries, which ranges from investor relations and sustainability teams through to the directly engaging with management, the company chairman or experts within the company. They keep records of meetings and correspondence with investee companies, and where appropriate schedule follow-up meetings in order to monitor progress. How a company responds to engagement is factored into their investment analysis.


LEA 06. Role in engagement process

06.1. エンゲージメントが不首尾に終わった場合のエスカレーション戦略があるか示してください。

06.2. 不首尾に終わったエンゲージメントの後に貴社が用いるエスカレーション戦略を示してください。

06.3. 補足情報 [任意]

Where we believe that shareholder value is threatened or is not being realised, we will request that the board takes appropriate action. In most cases, a private dialogue with executive management, non-executive directors and company advisers is our preferred way to protect our clients' interests. We will also engage with the chairman of the board or the senior independent director where appropriate. If we receive an unsatisfactory response, we will assess to what extent this affects the overall investment decision. To protect our clients' assets, we would then look at options that might include publicly opposing management who refuse to act on our concerns or reducing our exposure or potential divestment.  

 


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


LEA 08. Tracking number of engagements

08.1. 貴社がエンゲージメントの数を追跡しているかどうかを記載してください。

エンゲージメントの種類
エンゲージメントの追跡
単独/貴社内のスタッフのエンゲージメント

協働的なエンゲージメント

08.2. 補足情報[任意]


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