Our approach to engagement has two aspects. One is the formal engagement process that takes place for companies defined as problematic by the SVVK-ASIR Association. Suva delegates to SVVK-ASIR the formal engagement with these companies.
The second aspect of our engagement is less formal and is part of the ongoing communication with companies as part of our investment analysis. In our active universe, especially in Switzerland, we regularly have contact with company management. Emphasizing our long-term focus in meetings with management allows us to encourage ESG measures that are reasonable and help to ensure that corporate governance complies with ESG principles. The ESG-issue we put the most emphasis on is corporate governance.
Continuing engagement is in alignment with our long-term investment strategy.
Suva has established an internal policy for proxy voting. Many voting items are covered by specific instructions on how to vote in certain circumstances. Certain controversial items require a decision by executive management or a Committee of the Suva Board.