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Generation Investment Management LLP

PRI reporting framework 2020

You are in Direct - Listed Equity Active Ownership » Outputs and outcomes

Outputs and outcomes

LEA 09. Number of companies engaged with, intensity of engagement and effort

Indicate the proportion of companies in your listed equities portfolio with which your organisation engaged during the reporting year.
We did not complete any engagements in the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion of companies engaged with, out of total listed equities portfolio

Individual / Internal staff engagements

180
100

09.2. Indicate the breakdown of engagements conducted within the reporting year by the number of interactions (including interactions made on your behalf).

No. of interactions with a company
% of engagements
One interaction
2 to 3 interactions
More than 3 interactions
Total
100%

09.5. Additional information. [Optional]

We engage with all the companies on our Focus Lists, whether they are in the Global and Asia portfolios or not. Therefore the total number of companies we engaged with represents those with all our Focus List companies. 


LEA 10. Engagement methods

10.1. Indicate which of the following your engagement involved.

10.2. Additional information. [Optional]


LEA 11. Examples of ESG engagements

11.1. Provide examples of the engagements that your organisation or your service provider carried out during the reporting year.

ESG Topic
Diversity
Conducted by
Objectives

Engage companies on diversity, mainly in terms of gender, to ultimately encourage them to make improvements at board level. However, we acknowledge that different businesses with different histories operating in different industries are able to deliver change at different rates. Our intention is to determine whether management teams understand the issues and are taking steps we feel are appropriate.

Scope and Process

In 2018 we meaningfully increased our engagement with our Focus List on the diversity profile of their Board, management teams and broader employee base. This work continued in 2019. in 2019, we engaged with 34 companies specificaly on gender diversity in 2019. the vast majority of these discussions received a positive reception from our companies, as many of them acknowledge the importance of this topic and the journey they are on. 

We are very early in our engagement efforts and it is too soon to claim any direct impact, but we would note that in 2019, 27 of our Focus List companies increased the number of women on their boards*. We are encouraged by this trend, as well as the response to our evolving engagement efforts.

*This is based on the 100 Focus List companies that were on our Focus List for the whole of 2019 – i.e., it does not include removals and new additions during the year. Twenty-seven companies increased the number of women on the board, while in five cases the number of women decreased.

 

Outcomes
ESG Topic
Climate Change
Conducted by
Objectives

While our portfolios are significantly less carbon intensive than their respective benchmarks, we remain disappointed with the number of our Focus List companies that still do not yet report to the Carbon Disclosure Project (CDP). We would like this to improve significantly in the next CDP reporting cycle.

 

 

Scope and Process

In 2019, we stepped up our engagement with companies that do not disclose greenhouse data, sending letters to the management of 28 of our Focus list companies this spring. We had follow-up engagement meetings with 11 of these companies. We are pleased to report that two companies said they were in the process of disclosing greenhouse gas (GHG) emissions data, three companies said they would disclose in the near future and three companies said they were actively reviewing or in discussions with CDP.

We also looked more closely at disclosure of emissions in the value chain. For many of our companies, more than 90% of emissions lie upstream or downstream in the value chain (known as ‘Scope 3’ emissions), beyond the company’s own operations. Based on modelled estimates, we have identified 30 companies that account for 90% of Scope 3 emissions in our Focus List – and we believe only five of these have high-quality Scope 3 disclosure. Engaging with these 30 companies will be a focus for us in 2020.

 

Outcomes

11.2. Additional information. [Optional]


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