The objective of our engagement is to access information, further understanding, develop key relations and seek to influence and create change. We’ll always look to conduct dialogue in an amicable and constructive way. We believe building and maintaining the right relationships with our investee companies can be key to being able to convert engagement into successful outcomes.
Where we feel we’re not making progress with a company board, we can involve our peers and engage collaboratively. We’d do this with other pension funds, our fund managers and our responsible ownership partner. We may also raise the issue with regulators who may be able to take a different approach on addressing the issue. If we can’t reach a successful outcome, we may try to influence the way fund managers vote at that company’s Annual General Meeting. We also look to feed back good practice of other companies in the same sector to encourage change and action.
Before we communicate with a company, we’ll set out clearly what it is we’re trying to achieve. We’ll set out our reasons for getting in touch, and our expectations concerning what successful dialogue might look like.
We don’t expect to achieve profound change straightaway. We’ll follow up several times with the company. We’ll request to meet different board or management representatives to see what progress has been made and how our comments and concerns have been considered.