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Eaton Vance Corp.

PRI reporting framework 2020

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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

02.2. Indicate whether your organisation plays a role in the engagement process that your service provider conducts.

02.4. Additional information. [Optional]

EVC's affiliates believes that active engagement is an essential component of responsible investing. In addition to direct dialogue with issuers, we use our power as shareholders to vote proxies in accordance with our guidelines, which vary by affiliate.

Through EVC offers structured engagement through their affiliate, Calvert. Informed by proprietary ESG research, Calvert analysts identify financially material issues on which to engage with company management. Calvert believes that by working with companies to address areas for improvement, companies can improve their performance on these material environmental, social and/or governance issues, as well as improve Calvert's position as a shareowner. These improvements may, in turn, elevate both company and industry standards, providing a positive societal and economic impact.

Within the Listed Equity/Active Ownership section, the engagement responses provided reflect the work of Calvert.

 


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

Service-provider engagements

Service-provider engagements

specify

          Calvert's service provider Hermes EOS further considers the additional of their engagement, the feasibility of engagement and their potential impact (voting rights). Considerations that support
        

03.3. Additional information. [Optional]

Calvert engages on ESG issues with many companies in their portfolios. The research Calvert conducts for their portfolios informs the advocacy they do. Engagement is based upon their assessment of the material ESG issues for a specific sector/company and the company's performance on those issues. Calvert's broad advocacy items include:

  • Clean Air - promote clean energy and energy productivity and reduced air pollution
  •  Clean Water - reduce corporate exposure to water risk and impacts to water quality
  •  Diversity - advance women and minorities within companies, at board and management levels
  •  Labor and Human Rights - strengthen performance in own operations and supply chains
  •  Disclosure - improve disclosure of material environmental, social and governance matters

Calvert's service provider Hermes EOS further considers the additionality of their engagement, the feasibility of engagement and their potential impact (voting rights). Considerations that support Calvert's decision to use a service provider include: alleviate the resource burden of engagement, the ability to have greater impact on ESG issues as well as the potential to enhance knowledge of ESG issues through collaboration and being part of a larger network.


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
Service-provider engagements

04.2. Additional information. [Optional]

During preparation for engagement and during the dialogue with the company, analysts should seek to build a greater understanding of management. The following are questions Calvert asks when seeking to answer through dialogue. These are most likely not the actual questions analysts ask.

Questions for Calvert Analysts to Answer:

  • Does the company have public disclosures that describe how it approaches/defines material issues and manages them? Are company representatives able to explain this and does the approach come across as well structured?
  • Does the company demonstrate an understanding of how these issues affect the business (connected to business strategy and results, addressing risks and impacts, helping to drive innovation and opportunity)?
  • Is the company's work on these issues legitimate and effective (supported with strong governance and commitment from the top, and combined with stated objectives and regular public reporting on progress)? Does it feel like marketing, PR?
  • Does the company address what we believe are the priority matters?
  • Is the work on ESG integrated across the business and properly directed and resourced?
  • Or is the work on ESG matters disconnected from the day-to-day activities and/or focused on issues that are not relevant to the company's success or the interests of key stakeholders (customers, employees, regulators, communities, or the environment)?
  • Is the work integrated in a way that it connects to key business drivers?
  • Does the company appear to lead or lag its peers?

Calvert's service provider Hermes EOS conducts engagements using specific milestone-driven objectives for most companies in its engagement programme.


LEA 05. Process for identifying and prioritising collaborative engagement

Indicate whether you monitor and/or review engagement outcomes.
Individual / Internal staff engagements
Collaborative engagements
Service-provider 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]


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

07.1. Indicate whether insights gained from your organisation`s engagements are shared with investment decision-makers.

Type of engagement

Insights shared

Individual / Internal staff engagements

Collaborative engagements

Service-provider engagements

07.2. Indicate the practices used to ensure that information and insights gained through engagements are shared with investment decision-makers.

07.3. Indicate whether insights gained from your organisation’s engagements are shared with your clients/beneficiaries.

Type of engagement

Insights shared

Individual/Internal staff engagements

Collaborative engagements

Service-provider engagements

07.4. Additional information. [Optional]

Engagement capabilities presented reflect the work of EVC's affiliate, Calvert.

Calvert actively monitors and reviews the activities of their service provider Hermes EOS through quarterly calls and regular reports. Hermes EOS provide a client facing portal which allows Calvert to refer to the full history of engagement with each company and track progress.

Calvert regularly posts articles and other information on the Calvert website regarding their engagements, which is available to internal investment managers, other staff as well as the general public.


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

Service-provider engagements

08.2. Additional information. [Optional]

Engagement capabilities presented reflect the work of EVC's affiliate, Calvert.

Calvert's service provider, Hermes EOS,provides regular reporting with full disclosure on the number of engagements conducted on Calvert's behalf.


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