Describe how ESG is taken into consideration in voting recommendations.
Environmental, social and governance factors all underpin ACSI’s proxy voting recommendations. ESG is integrated through ACSI fund members’ active ownership of shares, industry collaboration on ESG issues and through company engagement and proxy voting.
ESG considerations feed into voting recommendations through internal and external research, previous years’ voting outcomes, controversies and through ACSI’s priority issues which include; labour and human rights in supply chains, corporate governance issues, remuneration issues, climate change and board diversity.
ACSI will generally favor those proposals that result in the disclosure of information that is useful to shareholders and not overly prejudicial to their commercial interests. Resolutions should be linked to improved governance or transparency within the relevant company. A judgment on each proposal will be based on what is in the best interest of shareholders, and a thorough assessment of any potential impacts on the company.