Internal engagement - analysts and investment teams: We are raising awareness and educating our investment teams about the need for additional ESG disclosure by corporate issuers. More specifically, we are beginning to see engagement examples from our investment professionals that reflect issuers' progress in certain fundamental E, S, or G areas. However, the companies are not always disclosing their progress or key data metrics in their financial statements. The transparent and comparable disclosure of fundamental factors, including ESG specific issues, is important to our investment professionals, so they have increasingly been encouraging this disclosure as part of their engagement.
Internal engagement - the firm: As a firm, we have chosen two focus areas in 2020: climate change and ESG data. We expect to engage as a firm in both areas, and will report back next year with progress.
Collaborative engagements: Our firm is part of the Association for Institional Investors (AII), and our ChiefOperating Officer is serving as its president. This group consists of the largest Boston area asset managers, along with accounting firms, exchanges, and other industry participants. The group is currently working with eVestment to establish standards to gather information about each firm's ESG work and activiity. Our goal is to help improve the efficiency and effectiveness of information gathering, and influence standardized disclosures of the key ESG factors.
Service provider engagements: We are in the process of signing up to be a supporter of the TPI (Transition Pathways Initiative).
We refer the reader to our Proxy Voting Policy and Procedures, and our Stewardship Code Policy Statement. Together, these documents form our external policy statements on active ownership. In addition, we are interpreting these questions to include active ownership policies across the equity investment teams, even though they may not be reduced to writing.