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Eskom Pension and Provident Fund

PRI reporting framework 2020

You are in Direct - Listed Equity Active Ownership » Outputs and outcomes

Outputs and outcomes

LEA 09. Number of companies engaged with, intensity of engagement and effort

Indicate the proportion of companies in your listed equities portfolio with which your organisation engaged during the reporting year.
We did not complete any engagements in the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion of companies engaged with, out of total listed equities portfolio

Individual / Internal staff engagements

25
50

Collaborative engagements

0
0
Service-provider engagements
26
50

09.2. Indicate the breakdown of engagements conducted within the reporting year by the number of interactions (including interactions made on your behalf).

No. of interactions with a company
% of engagements
One interaction
2 to 3 interactions
More than 3 interactions
Total
100%

09.4. Indicate the percentage of your service-provider engagements in which you had some involvement during the reporting year.

Type of engagement

% of engagements with some involvement
Service-provider engagements

09.5. Additional information. [Optional]

The Fund ’s engagement is applied, in a prudent manner, to express the Fund’s responsible investment stance on environmental, social and governance (ESG) issues with the intention of challenging investee entities to improve their practices to safeguard and unlock long term investment value.


LEA 10. Engagement methods

10.1. Indicate which of the following your engagement involved.

10.2. Additional information. [Optional]


LEA 11. Examples of ESG engagements

11.1. Provide examples of the engagements that your organisation or your service provider carried out during the reporting year.

ESG Topic
Health and Safety
Conducted by
Objectives

The Fund engaged mining companies on fatalities and safety in the mining industry.

Scope and Process
  • Proxy Voting: vote against management proposals in cases of poor disclosure of environmental and social risks
  • AGM attendance to express discontent where there is non-compliance
  • Meetings with management to seek revision of policies or practices
  • Encourage effective engagement with various stakeholders, government, other businesses and communities
Outcomes
ESG Topic
Executive Remuneration
Conducted by
Objectives
  • Full disclosure and transparency on director and executive remuneration structures and components in the three-part remuneration reports
  • Clear link between executive pay and performance that drive long term growth and shareholder value based on key ESG indicators
  • Linkage of executive remuneration with both financial performance and the desired culture and values
  • Clear alignment of executive interest with those of   shareholders in remuneration policy and practices
  • Clear link between executive remuneration and effective risk management
  • Full disclosure of the specific metrics and targets used to measure executive pay as well as their appropriateness
  • Fully independent and effective remuneration committees that will determine and monitor executive remuneration within companies
Scope and Process
  • Proxy Voting: vote against management proposals in cases of poor disclosure of executive compensation or a disconnect between remuneration and company performance
  • AGM attendance to express the Fund’s concerns where there is non-compliance
  • Meetings with management to seek revision of policies or practices
  • Engage with companies and remuneration committees in an effort to find ways to curb excessive escalations in executive pay packages
  • Assess the independence of any external compensation consultants whose services have been utilised by the company
  • Elevate research on executive remuneration practices
  • Engage the regulators such as the JSE and industry bodies to consider the introduction of measures that will strengthen shareholder rights in the context of executive remuneration such as binding say on pay votes, the imposition of maximum caps on certain remuneration incentives and to discourage companies from copying good remuneration policy templates in order to justify high salaries
  • CEO Pay Slice will be used as a proxy for CEO power and remuneration committee dynamics. The Fund will engage companies on the influence of CEO on the remuneration committee
Outcomes
ESG Topic
Sustainability reporting
Conducted by
Objectives
  • Improved disclosure of environmental performance and management strategies in annual reporting
  • Clear link between remuneration policies and management of ESG risks
  • Proactive management of current ESG risk exposure
  • Enhanced disclosure on sustainability and social policies, practices and effectiveness
Scope and Process
  • Proxy Voting: vote against management proposals in cases of poor disclosure of environmental and social risks
  • AGM attendance to express discontent where there is non-compliance
  • Meetings with management to seek revision of policies or practices
  • Encourage effective engagement with various stakeholders, government, other businesses and communities
Outcomes
ESG Topic
Climate Change
Conducted by
Objectives

The Fund engaged Banks on their climate change financing and policy positions. The objective was for Banks to have clear policies and positions on Funding industries and companies that contribute to climate risk. 

Scope and Process

Along with other shareholders the Fund voted on resolutions pertaining to climate change risks.

Outcomes
ESG Topic
Sustainability reporting
Conducted by
Objectives

Improvement of sustainability reporting and adoption of the UN Sustainable Development Goals.

Scope and Process

The Fund engaged investee companies to improve their sustainability reporting and adopt the UN Sustainable Development Goals.

Outcomes

11.2. Additional information. [Optional]


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