Describe how you define success when evaluating/reviewing engagements on ESG factors.
Our engagement on behalf of investor clients should improve portfolio companies management of their ESG incidents and/or most material ESG issues to an extend that would close the gap between management and current level of risk and opportunity exposure that could adversely affect the company, environment, society in general and/or stakeholder trust
Describe how you measure success when evaluating/reviewing engagements on ESG factors.
We masure engagement success in terms of Engagement Progression through our milestone-system, consisting of five milestones per most material ESG issue (recognition and commitment, targets and strategies, management, transparency and performance) and five level of management efforts per milestone (very high, high, medium, low, very low)
Describe the actions you take (or recommend your client to take) if the engagement on ESG factors has not met the success criteria.
If our engagement on behalf of investor clients does not meet our engagement goals within an agreed period of time, we would normally escalate our engagement efforts, by initiating a dialogue with the company CEO, Chairman of the Board, by proxy voting, by collaborating with possible other investor coalitions etc. If Engagement Progression is still measured as negative after all relevant escalation efforts have been used, we would normally recommend our investor clients to divest from the company.