MML Ltd’s purpose is to enable businesses and people from all walks of life to achieve their financial goals and life aspirations. The MML Ltd's responsible investment policy is aligned and integrated with the company’s purpose and is approved and practically implemented and maintained by the MML Ltd's Exco. MML Ltd acknowledges that we are in a privileged position to act as fiduciary to our clients and stakeholders. We strive to promote financial wellness for our clients and our values will always remain our foundation pillars. These values are accountability, diversity, excellence, innovation, integrity and teamwork. Responsible investing is part of our core belief and sustainable and responsible investment practices are a material factor underpinning our long term success. MML Ltd's considers the environmental, social and governance risk of assets in which we invest to be relevant to the performance of the overall objective – across all asset classes, sectors, markets and through time. MML Ltd works to incorporate ESG factors into our investment considerations and ensuring that sustainability forms a cornerstone of our business principles and in our business dealings and undertakings. Through our responsible investment approach we aim as fiduciaries of client’s assets to invest in a manner that is fair and driven by the intention to generate long-term, sustainable investment returns while at the same time ensuring that the company remains true to its philosophy, portfolio construction and robust investment processes. MML Ltd’s investment philosophy is an outcome-based investment approach, which is cognisant of managing the clients’ experience and journey to achieve a defined investment goal over the determined time period. We realise that ESG risk factors affect the sustainability of companies and therefore it is especially relevant to our investment decision-making process. MML Ltd has set goal posts to help us build on our responsible investment approach. Under each goal post is a list of actions that we implement and annually review to strengthen the responsible investment approach. Our goal posts are: ESG integration, Active Owners, Seek Disclosure, Regulation and Codes, Advocacy and Report Progress. We believe that our approach should preferably be pro-active and investigating directly or through our appointed service providers ESG risks, before these escalate to be material events that may affect our clients or stakeholders. Should they occur, an assertive process is adopted to manage the effect. It is our fiduciary duty to follow up on material ESG concerns and engage on the matter appropriately. MML Ltd encourages better transparency and disclosure of responsible investment practices across the investment industry. Therefore we promote integration of this information in investment decision-making to internal and external investment professionals, service providers and consultants. Collaboration on responsible investment initiatives and encouragement of sharing ESG information within the investment industry is important to MML Ltd. We will support/participate in appropriate networks and platforms and seek to collectively address relevant emerging issues.
We believe in active ownership as one of the important levers to successfully integrate responsible investment practices into its investment processes. Therefore, it uses its market presence, through shareholder activism, to contribute towards creating a well‐balanced economy for its investors. The proxy voting guidelines policy is also inherent to our risk management process. Good corporate governance with its characteristics of transparency and accountability will force boards of directors to concentrate on their main function, which is to promote shareholder value and good corporate citizenship.
We use our market presence to influence and encourage companies to improve their management of environmental, social and governance (ESG) factors. This will lead to sustainable financial performance for the investor over the long term. Examples of engagement opportunities are: Resolutions for upcoming board meetings that are contrary to our policies; Before shareholder meetings to discuss the relevant resolutions; Concerning news regarding a company in the media; To assist companies to improve their corporate governance; To engage regarding economic, social or environmental considerations of the invested company.
MML Ltd will review this policy annually or at such time as the board sees fit to revise its ESG policies and procedures