Storebrand measures and registers all engagement with companies on the following internal scale.
Level 1: Company contacted (explanation of concerns+ request for company practice improvement); no response
Level 2: Comapny contacted; unsatisfactory response
Level 3: Company contacted: satisfactory response
Level 4: Company contacted: Improved business practice (aligned with PRI definition of success: "The measures taken were all or mostly completed after Storebrand contacted the company)
Engagements can have different goals and a milestone evaluation approach (from basic to advanced practice) might be used; However, so far, we are measuring progress by using the same scale depending on how receptive the company is to achieve those goals.
The progress of engagement is discussed in a monthly meeting in the Sustainable Investment team including minimum requirements, alternative approaches to achieve or improve dialogue, and whether or not to escalate an engagement.
Escalation of engagement, if the company does not meet our minimum requirements (or communicate such actions), after repeated attempts at dialogue. "Escalate" might be to contact excecutive level staff at domestic offices to obtain contact with headquarter staff, involve Storebrand executives in the dialogue, collaborate with other investors or co-file/support a shareholder resolution. As a last resort, where the company is in violaiton of Storebrand invstments standards and there is a risk of recurrence, the case will be presented before the Sustainable Investment Committee, to make a final decision on whether or not to exclude the company from investments. If excluded, the company is always informed of the decision, and contacted regularly afterwards to encourage improvement.
Collaboration: Storebrand has a very strong belief in collaboration with other investors as a means to achieve positive change in portfolio companies. We are active users of the PRI Clearing House and are involved in a number of PRI led engagement groups. In these engagement cases objectives are set at a group level, though achievment of these objectives will still be monitored on Storebrand's internal scale.