One of the pillars of a best-in-class active ownership approach is engagement with the management and boards of equity and fixed income issuers on ESG considerations. The objectives of engagement include seeking to better understand a company's position on various issues and communicating our views, with the goal of improving the management of ESG risks and opportunities at portfolio companies as well endeavouring to influence ESG practices and to promote enhanced disclosure and transparency. We believe that sound management of ESG risks and opportunities is essential for long-term outperformance.
Given our size and the fact that we invest through third-party investment managers, we typically undertake engagement activities as part of collaborative groups, and though an engagement service provider. We believe that the combined influence of like-minded investors with substantial combined holdings will typically lead to better outcomes than we could achieve on our own.
We participate in formal engagement collaborations through memberships in various organizations, by teaming up with other like-minded investors, and by using service providers to engage on our behalf. We have a consultative process managed by our Responsible Investing Committee to determine in which collaborations to participate. In order to identify and prioritize collaborative engagements, we use a number of criteria including our ability to add value to the collaboration, the materiality of the specific ESG risks to be addressed, and the potential impact on client portfolios.
Our service provider, EOS at Federated Hermes, offers quarterly service review meetings and opportunities to influence the engagement selection process as well as ad-hoc engagement progress discussions and direct participation in engagements where appropriate at our request. In practice, we conduct regular discussions with them on engagement priorities, key objectives, progress in meeting those objectives and outcomes achieved. We endeavour to participate selectively in their engagement activities from time to time. Our service provider systematically makes stewardship activity reports available to us via its EOSi client portal, which is regularly updated, enabling a company-level view of engagement objectives and issues and activity.
We monitor all of our collaborative engagement activities to assess their effectiveness.
We regularly report on the progress of collaborative engagements both internally and externally to stakeholders and we may share insights from engagement activities with external investment managers where relevant.