As a responsible investor, ACTIAM will tend to favour shareholder resolutions seeking policies, measures or disclosures that will have a positive impact on investee companies' social, environmental and ethical performance. We have a detailed policy on shareholder proposals based on our Fundamental Investment Principles. ACTIAM will normally vote in favour of shareholder proposals aimed at improving the company's governance and encouraging the company to implement policies and measures that may prevent a possible conflict with ACTIAM's Fundamental Investment Principles. ACTIAM will vote against shareholder proposals that might lead to the opposite. Just as with standard agenda items, all shareholder proposals will be analysed on a case-by-case basis.
To increase the impact of our active ownership activities related to our focus themes of climate, land and water, ACTIAM will link voting choices to engagement activities in two ways. First, ACTIAM has more stringent requirements for companies in sectors considered to be high-impact in terms of our focus themes. Specifically, when it comes to supporting management proposals at general meetings, ACTIAM applies additional sustainability requirements in relation to board structure, elections of directors, remuneration, risk management and corporate restructurings.
Secondly, ACTIAM will periodically evaluate how engagement companies are responding to our engagement efforts and how the companies are progressing on the issues identified during engagement. ACTIAM may withhold support for management resolutions when companies are insufficiently responsive or making progress too slowly.
To further link voting and engagement ACTIAM, as of 2018, ACTIAM analysts are contacted by our service provider to review the voting advice of 60 selected engaged companies. In such cases, ACTIAM may apply stricter voting criteria, write a dedicated letter to a company before or after the AGM or discuss voting decisions in engagement meetings.
Note that, the percentage in question LEA 18.3 reflects the ratio of number of engaged companies versus the number of companies where we voted against management recommendations. These engagement do not (necessarily) result from the voting outcome/recommendation. In other words, our engagements are not per se related to voting activities.