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Carnegie Fonder AB

PRI reporting framework 2020

You are in Direct - Listed Equity Active Ownership » Engagement

Engagement

LEA 02. Reasoning for interaction on ESG issues

Indicate the method of engagement, giving reasons for the interaction.

Type of engagement

Reason for interaction

Individual / Internal staff engagements
Collaborative engagements
Service provider engagements

02.4. Additional information. [Optional]

We primarily engage independently but also collaborate with other shareholders, for instance via CDP or in an effort to nominate independent board members, for instance in Russia via efforts such as API (association of institutional investors). We also serve on board nomination committees when given the opportunity. Furthermore our portfolio managers have informal and ongoing collaborations with other asset managers concerning industry-wide sustainability topics such as improving disclosure and also on company-specific issues.


LEA 03. Process for identifying and prioritising engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagements.

Indicate the criteria used to identify and prioritise engagements for each type of engagement.
Type of engagement
Criteria used to identify/prioritise engagements
Individual / Internal staff engagements

Individual / Internal staff engagements

Collaborative engagements

Collaborative engagements

03.3. Additional information. [Optional]

We distinguish between proactive and reactive company engagements (dialogues):

Proactive dialogues

Meeting company representatives, preferably on-site at their business, is an important aspect of our company analysis. Following initial investment, we maintain regular dialogue with the holdings.

As long-term investors, we want to express our opinions and expectations and encourage our holdings towards an approach that is as long-term as our own, with regard to, for example, investments in more sustainable production.

A consistent theme in our proactive dialogues is that we encourage our holdings to be more structured in their sustainability work and to integrate sustainability into all aspects of their business. Company-specific topics and issues are also identified through our proprietary tool, CF THOR.

Accordingly, we prefer our holdings to sign the ten principles of the UN Global Compact and to measure, report and reduce their climate impact.

Reactive dialogues

If we receive information that a holding is not meeting our sustainability standards, we rarely sell the holding immediately, preferring instead to initiate a constructive dialogue to ascertain that the company clearly understands the problem and wants to improve.

The process is as follows::

  1. The fund manager seeks further information and discusses the holding with our Responsible Investment Board.
  2. The fund manager contacts the company to discuss our concerns.
  3. The CEO of Carnegie Fonder makes more formal contact with the CEO or chairman of the holding.
  4. We contact other shareholders to initiate joint shareholder engagement.
  5. If the response is unsatisfactory and the company does not demonstrate a willingness to change, we may decide to divest the holding.

The time it takes complete these processes varies, depending upon the nature of the issue, the size of our holding and where the company is based geographically. Each case is unique and is evaluated individually.

 


LEA 04. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.
Indicate whether you define specific objectives for your organisation’s engagement activities.
Individual / Internal staff engagements
Collaborative engagements

04.2. Additional information. [Optional]

All engagements have a specific objective in mind, for example to improve practices, policies and disclosure on a material ESG-topic. 


LEA 05. Process for identifying and prioritising collaborative engagement

Indicate whether you monitor and/or review engagement outcomes.
Individual / Internal staff engagements
Collaborative engagements
Indicate whether you do any of the following to monitor and/or review the progress of engagement activities.
Individual / Internal staff engagements
Collaborative engagements

05.3. Additional information. [Optional]


LEA 06. Role in engagement process

06.1. Indicate whether your organisation has an escalation strategy when engagements are unsuccessful.

06.2. Indicate the escalation strategies used at your organisation following unsuccessful engagements.

06.3. Additional information. [Optional]


LEA 07. Share insights from engagements with internal/external managers

07.1. Indicate whether insights gained from your organisation`s engagements are shared with investment decision-makers.

Type of engagement

Insights shared

Individual / Internal staff engagements

Collaborative engagements

07.2. Indicate the practices used to ensure that information and insights gained through engagements are shared with investment decision-makers.

07.3. Indicate whether insights gained from your organisation’s engagements are shared with your clients/beneficiaries.

Type of engagement

Insights shared

Individual/Internal staff engagements

Collaborative engagements

07.4. Additional information. [Optional]


LEA 08. Tracking number of engagements

08.1. Indicate whether you track the number of your engagement activities.

Type of engagement
Tracking engagements
Individual/Internal staff engagements​

Collaborative engagements

08.2. Additional information. [Optional]

During 2019 we developed and implemented a formal engagement log which is centrally stored and shared by the entire investment team. The log tracks the specific details and progress of each engagement, including a description of the issue, proactive or reactive type of engagement, goals, fund manager responsible, and next steps.


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