Several categories of engagement within our program are derived from the results of our internal ESG company evaluations program. We undertake tactical dialogues in response to emerging risks and opportunities: these include companies identified through our evaluations process where there are concerns about lack of disclosure or effectiveness of mitigation of key sector ESG risks that could threaten company value, as well as companies currently facing major ESG challenges that have been identified through our Management Breach Investigation and/or OECD Due Diligence processes. ESG company evaluations and information relating to engagement is collected within a single database.
Our internal corporate engagement staff share annual plans and quarterly updates on all corporate engagement with both internal portfolio management colleagues and external portfolio managers. In the case of some of our external portfolio managers who have internal engagement capacity, we develop an engagement strategy for the portfolio companies together and work collaboratively on dialogues.
In the context of our OECD Due Diligence process, we reach out to external portfolio managers where portfolio companies have been identified as being associated with severe adverse impacts, to share insights and determine whether we need to engage directly.