Our ESG analysis helps identify new ESG risk which potentially impact our portfolio. We undertake a process to assess and manage our exposure to each of these risks. We start by analyzing each company’s vulnerability and strategy for addressing the particular risk. Then we confirm our assessment by seeking clarification or greater detail on policies and practices from the company, independent third parties and through media monitoring. We review the company’s response, the findings of our analysis and any new information to determine whether further action is required. Such action may include ongoing monitoring of the company’s risk management process, filing a shareholder resolution or divestment.
The shareholder resolution process encourages greater communication between the shareholder and management. In most cases, once a resolution has been filed with the company, conference calls and face to face meetings are held with the shareholder to substantiate the basis for the resolution. This process allows the shareholder to hold detailed, in-depth discussions with management on the company’s approach to a particular issue.