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Engagement International

Service Provider Reporting Framework 2017

You are in Stewardship Services » Engagement


SS 02. Your definition of engagement activities

02.1. Provide a brief description of what your organisation defines and/or interprets as engagement activities.

          We support institutional investors 1) formulating and implementing engagement policies, strategies and set-up 2) identifying portfolio companies with a high Engagement Potential 3) assessing ESG Risk and Management of identified companies 4) engaging with the identified portfolio companies with a high Engagement Potential through bi-annual face to face meetings and/or conference calls 5) escalating engagement activities in case of negative engagement results (e.g. advisory regarding proxy voting) 6) recommending improvements of ESG Management to the engaged companies 7) reporting to investor clients regarding engagement assessments, dialogue and Engagement Progression 8) presenting engagement results to investor clients and their stakeholders.

SS 03. Acquiring ESG data and information

03.1. Describe how and where you acquire your ESG data and information.

          We work closely together with MSCI ESG Research. However, we can engage based on ESG research from all serious research providers

03.2. Describe how this information influences your product offerings and/or how you implement your services.

          We base our engagement mostly on MSCI ESG Research, we identify most of our engagement cases from MSCI assessments, we refer to MSCI ESG Research and they refer to us, we meet clients and prospects together, but we operate independently as separate companies.

SS 04. Prioritizing engagement topics

04.1. Describe how you select priority engagement topics to raise with companies.

          As a point of departure, we engage with 1) Companies that are violating international norms and guidelines (typically UNGC) according to MSCI ESG Research, ) Companies that are among the 100 listed companies that according to MSCI are contributing the most to climate change in terms of the highest potential future carbon emissions, the highest current carbon footprints scope 1 and 2 and the highest carbon intensity per US dollar sold 3) Companies showing a large GAP between a high ESG Risk and Opportunity Exposure and a low level of Management of the most material ESG issues.
In our general ESG engagement dialogues, we would engage on 1) the violations of international norms 2) the eight most material ESG issues for the particular company and the Sustainability and Corporate Governance setup.

04.2. Describe how you define the objective of the engagements and reach agreement on this with the client.

          Based on data from MSCI ESG Research, we provide our investor clients with a due-diligence/overview/screening of the investment portfolio, to identify the companies with the highest Engagement Potential according to the clients investment policy and beliefs and our selection criteria. From this, investor clients can decide how many and which companies they would like Engagement International to engage with on their behalf.

SS 05. Engagement model and clients’ needs

05.1. Describe the processes that are in place to ensure that your engagement model takes into account the diversified needs of your clients.

          1) Investor clients can in a flexible way select the ESG point of departure for our engagement on their behalf, and which individual companies to engage with 2) we meet with our clients to present and discuss our engagement results and methodology twice a year 3) as a standard procedure, we would always ask our clients and prospects to evaluate and comment new services and products.

05.2. Describe how you align your engagement strategy with your client's investment principles and policies.

          Please see our answer of question SS 05.1

SS 06. Channels of engagement

06.1. Indicate what channels you use to engage. Tick all that apply and indicate the frequency with which you typically use the channels.

Engagement type




06.2. Describe your typical execution method.

          We invite the companies we are engaging with for two dialogue-meetings per year, either face-to-face, by conference calls or in a few cases where this is not possible, by email correspondence

SS 07. Accessing the appropriate teams when engaging with companies

07.1. Describe how you ensure that you have access to the appropriate teams and team members at the company you engage with.

          In our invitations for engagement meetings we include our suggested meeting agenda, to ensure that the most relevant company representatives would participate. Normally, we meet with IR, sustainability experts or managers. However, in case of negative Engagement Progression, a part of our escalation process will include the company CEO, Chairman of the Board and/or Chair-persons of relevant Board Committees

07.2. Indicate from the options below the employee at the company you typically engage with.

Employee level






07.3. Describe how you ensure the client’s rationale and engagement objectives are being communicated clearly to the company.

          We ensure that client's rationale and engagement objectives are being communicated to the companies by 1) inviting interested clients to participate in engagement meetings and -tours and 2) by meeting with clients twice a year to discuss engagement results and other relevant topics.

07.4. Describe how you adapt your engagement style to ensure you maintain a constructive relationship with the company that you are engaging with.

          We ensure a construction relationship with the companies we engage with by 1) sending our meeting agenda before the dialogue meetings 2) by being very clear regarding our engagement purpose, processes and methodology 3)by sending our engagement-report-draft to the engaged companies for their review, before it is provided to the investor clients 3) by meeting the companies twice a year to follow up on previous engagement 5) by aiming to meet relevant international standards and norms 6) by being professional, fair and in accordance with our Code of Ethics.

SS 08. Monitoring engagements

08.1. Indicate your method for monitoring engagements over time.

08.2. Indicate whether you provide clients with recommendations for next steps.

08.3. Describe the format that you typically use to provide your recommendations to the clients.

          We provide our recommendations to the clients through our engagement reports and bi-annual meetings

SS 09. Identifying emerging ESG issues

09.1. Indicate whether you identify emerging ESG issues.

09.2. Describe how you identify emerging ESG issues.

          We identify emerging ESG issues primarily through our collaboration with MSCI ESG Research, dialogue with clients, prospects and companies and daily intelligence activities

09.3. Describe some of the main ESG issues you have identified in this process.

          Privacy and integrity, tax, SDG's

SS 10. Defining and measuring success

10.1. 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

10.2. 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)

10.3. 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.

SS 11. Companies changing practices/behavior following engagement

11.1. Indicate whether you track the number of cases during the reporting year in which a company changed its practices, or made a formal commitment to do so, following your organisation’s engagement activities.

11.2. Indicate the number of companies that changed or made a formal commitment to change in the reporting year following your organisation’s and/or your service provider's engagement activities.


11.3. Additional information. [OPTIONAL]

SS 12. Publishing engagement outcomes

12.1. Indicate whether you publish your engagement outcomes.

12.2. Indicate whether you enable your clients to publish your engagement outcomes.

SS 13. Engaging with policy makers and industry bodies

13.1. Indicate whether your organisation – individually or in collaboration with others - engaged with public policy makers and industry bodies on engagement topics in the reporting year.