Individual / Internal staff engagements: The ESG Analysts and the relevant Portfolio Managers engage with the Companies having poor or low ESG disclosures to communicate the need for transparency around ESG initiatives, to hand-hold them in this process by providing them best practice documents and to enable them to improve over time.
Collaborative Engagements: SBIFMPL actively participates in the following initiatives where we collaborate with other institutional investors on ESG engagements with Companies:
- Climate Action 100+
- UNPRI's Investor Commitment to Support a Just Transition on Climate Change
- Investor Expectation Statement on Climate Change for Aerospace and Airline Industry
- UN PRI’s Global Investor Statement on Deforestation and Forest Fires in the Amazon
Service Provider Engagements: We take the service of one international and one domestic service provider for ESG based assessments of the companies under our coverage. While the international service providers have their own methodology and procedures, we have co-designed the domestic service provider’s questionnaire for circulation, clarified the intent of the engagement, put them in touch with the companies, set the timelines and the outcomes of the engagement and are following up on the engagement activities on a regular basis.
In case of international service provider, we do recommend them to reach out to companies that have not been approached for a feedback on their respective ESG ratings. This is done once it comes to light during our individual level engagements that such companies had no opportunity/avenue to provide their feedback/inputs to help improve ESG assessment. We also help connect the ESG service providers with relevant company managers and facilitate better information sharing. This becomes especially important as ESG related disclosures are at a nascent stage, though evolving at a rapid pace.