We disclose on a quarterly basis all our voting recommendations on the Coronation website https//www.coronation.com/institutional/about-us/stewardship/. Our corporate engagements and proxy voting activity is disclosed in our annual Stewardship Report (also available on our website) and provide insight into the nature of these engagements through case studies with both positive and negative outcomes. PRI signatories are required to report publicly on their responsible investment activities each year. The Transparency Reports together with the Assessment Reports are accessible to signatories on the PRI Data portal. Adhoc surveys and questionnaires sent to us by our institutional clients. We also provide updates on ESG matters during regular client report back presentations.
We are able to upload portfolios and provided summary reports that detail ESG quality scores, ESG ratings as well as exposure to carbon intensive companies (carbon risk). We don’t place much value on ESG ratings given varying judgement on materiality etc, we review these third party reports to ensure we have considered all risks and opportunities. Measuring footprint is useful but is limited in what it can tell you about a portfolio’s exposure to carbon risks. We view this as a blunt tool which does not provide appropriate insight into risks and challenges. More in-depth analysis and context is essential to inform actual decision making. Our policy is not to divest, rather to engage and drive the change we’d like to see.
We record and track outcomes in our ESG engagement database. This includes a decision to invest / divest or voting action taken; whether the company changed practice / committed to change/ improved disclosure / if the issue is on-going. At times the outcome is an increased understanding and sometime our recommendations failed / there is no outcome or action required. We do not try to measure the impact on performance. The more fully integrated ESG is in the investment process, the harder it is to disaggregate the ESG driver from the broader investment decision. It is the cumulative, long-term performance that matters.