Fidelity has several measures in place to continually assess the materiality and feasibility of its engagements. Fidelity continuously tracks the investment thesis of its investee companies which forms part of its investment decisions. In addition, through regular dialogue between analysts, portfolio managers and the Sustainable Investing team, a collective examination and dialogue takes places to monitor and measure what steps companies have put in place to achieve remedial action and assess where progress has not been made. Fidelity looks closely at a company's financial results alongside its ability to address critical ESG issues, as part of an investors strategy for considering ESG issues.
In 2019, we started to build an engagement section in Insight, our Research Management System, (accessible by the full investment team) which will systematically record each engagement and the steps we have taken to reach the objectives and milestones identified for each engagement.
In relation to our thematic engagements, we work with the investment team to create the objectives and milestones of each thematic engagement and we then monitor our progress on these milestones periodically. We update the investment team regularly on the steps we have taken to reach our milestones.
In relation to the collaborative engagements we are involved in, the objectives are identified at the beginning the initiatives and will be revised as required as we progress through the engagements. For example, the initiative we worked on regarding Singapore banks and their coal policies, we started with an objective of tightening their coal policies and since we achieved this objective, we are continuing with our engagements moving the objective to increased disclosure on transition planning.