As a long-term investor and in order to protect and enhance shareholder value, LGPS Central aims to encourage best standards of corporate behaviour across ESG themes both at company level, sector level and whole-market level. We monitor investee companies where held in internally managed portfolios and expect our external fund managers to do the same. LPGS Central conducts top-down and bottom-up engagement. Top-down engagement is where the we identify themes of economic signiﬁcance and of likely relevance to a majority of stakeholders and pursue broad-based engagement usually in collaboration with likeminded investors or through partnerships. Bottom-up engagement is where we identify speciﬁc, idiosyncratic issues at investee companies and enter a strategic dialogue with the company to improve any identiﬁed weaknesses. These processes apply to all major asset classes and are global in remit. We engage companies and standard setters on a range of issues including but not limited to governance, climate change, employment standards, tax practices, board composition, human rights, employment practices and human capital management, social risk, reputational risk. Unsatisfactory corporate responses could lead to escalation.
Joining working groups, responding to consultations, dialogue with regulators and presenting at conferences are important features of LGPS Central's stewardship approach. Industry participation allows us to represent the interests of our clients to a broad audience and, through joint action, support investment outcomes over the long term. We seek participation including active contribution where this serves the long-term interests of our Partner Funds.
Our stewardship service provider EOS at Federated Hermes offers quarterly service review meetings and opportunities to feed into the engagement selection process as well as ad-hoc engagement progress discussions and direct participation in engagements where appropriate. We have in the course of 2019 taken part in two Client Advisory meetings where we discuss and influence the objectives for engagement and the engagement topics that will be given priority during revolving three-year cycles. We have also had discussions with our stewardship service provider on a set of Global Voting Principles and given input to those. We regularly discuss specific engagements to get support in our own direct dialogue with companies and/or to take part in engagements led by our service provider as appropriate.