This report shows public data only. Is this your organisation? If so, login here to view your full report.

Somerset Capital Management LLP

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 make a distinction between a discussion with a company on a sustainability issue (this could be a request for further information) and a formal engagement. The latter occurs when an issue has been identified by our investment team as posing a material risk to core business profitability or minority shareholder returns, and requires an engagement to try and reduce the risk, potentially enhancing the value of our investment. This is more formal process (internally for SCM), where we identify the aim of the engagement and a series of waymarkers and a timeline for progress on the issue. Ultimately if the risk remains very high and the company doesn't to act or prove us wrong, we will sell the stock. The team log discussions and formal engagements in a database. 

 


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]

Identifying and prioritising engagement is an art not an exact science. It is also a collaborative process where covering analysts sit down with fund managers and discuss issues causing concern, the most effective way to approach a subject with a portfolio company and the possibility for actually achieving change.


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]

One of the motivations for hiring Olivia Seddon-Daines as a Sustainability Specialist to sit in the investment team was so that she could support analysts and Fund managers to shape and drive forward engagements with portfolio companies.


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]

Objectives and KPIs are explored in depth during the annual sustainability review but the fund teams are responsible for reviewing the progress of engagements throughout the year and considering whether to intensify, escalate or discontinue the objectives as the situation demands.
 


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 (Private)


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]

We previously built a bespoke EM ESG database to record discussions and engagements with our portfolio companies, as well as to share our insight into practices across industries and markets in EM. This is a valuable shared resource, built by the Investment team, for the investment team. There is room to develop this resource and further embed it into the investment team's workflow. 


Top