For the active fundamental portfolio, ESG considerations are considered ex-ante before selection of the constituents of the portfolio. An assessment of potentially material ESG factors is carried out by a member of the Sustainable Ownership team, and discussed with the portfolio managers to highlight any potential ESG risks or opportunities. As part of the review, we also identify potential areas of concern and topics for engagement.
For companies in the fund, ESG considerations are also considered on an ongoing basis. We aim to engage with companies in this portfolio annually, and all engagement notes are shared with the portfolio managers, who also attend engagement meetings that focus on ESG. We regularly update our ESG research notes to reflect our engagement and voting.
For the other portfolios, we work closely with the portfolio manager to prioritise company engagement activity and share engagement notes after the event as appropriate. We hold regular meetings with the Chief Investment Officer and Head of Public Markets updating them on our active ownership activities, including engagement and proxy voting.