On RI we asked managers to report specifically on:
Their process for considering physical risks in relation to climate change (CC)
the priority given to climate change in engagement/advocacy and plans for the next 12 months
an update on TCFD reporting both by the manager and the uptake and quality of TCFD reporting for those companies in which we invest.
the managers 2 key ESG priorities (after CC) and engagement/advocacy plans for the next 12 months
The outcome is that we are pleased that in relation to the above the vast majority of our managers are performing as we would expect. Where there isn't a valid reason why they are not, through the meeting the manager is clear what our expectations are and they know we will follow up post meeting and the following year, so we expect that progress will be made, which is evidenced from prior years.
We challenge managers on highest carbon emitters/where there is a lack of carbon reporting and we know that managers engage and there is a year-on-year reduction in the carbon footprint of mandates and lower incidences of modelling companies carbon emissions.