During the questionnaire stage of the selection process, Investment Managers (IM's) are asked to describe their investment process and to what extent, if any, ESG considerations are incorporated into the decision making process. Proxy voting policy is requested where applicable. Later in the process, in person conversations about investment decisions making process, proxy voting and engagement practices are undertaken.
With regards to IM monitoring, IM's are required to resubmit proxy voting policy on an annual basis (or when there's material change). Proxy votes are analyzed using services from Broadbridge, as well as reports from IM's. We require annual attestations from IM's that they remain in compliance of proxy voting policy.
During quarterly conference calls, we have discussions around engagement and/or votes during the quarter as well as ad hoc discussions around specific shareholder proposals.
Annually, we have IM's resubmit their ESG policy, enquire to what extent, and how, ESG considerations are incorporated into the decision making process, and any ESG related initiatives undertaken during the year.