Describe how you select priority engagement topics to raise with companies and how you involve your clients in this process.
By evaluating the Ethics Metrics Credit Ratings for each of 100 large DIHCs on a quarterly basis since 2005, Ethics Metrics identifies those DIHCs with ratings indicating severe and undisclosed compliance violations of federal banking and securities laws as one set of priority candidates for engagements. The other set of priority candidates will be those DIHCs with ratings indicating sound governance and compliance with the Code of Ethics under Sarbanes Oxley and related banking and securities laws. Through Comprehensive Paid Engagements on the PRI's Collaboration Platform, asset owners and investment managers have the option to participate in one or more of 3 phases that include Education, Empowerment and Engagement, all for the goal of maximizing gains, minimizing losses at the portfolio level and igniting market discipline, market integrity and sound governance within related global financial markets.
Describe how you define the objectives and milestones of the engagements and how you involve your clients in this process.
Initial objectives are to help asset owners and investment managers maximize gains and minimize losses through (A) paid subscriptions to the DIHC Rating Reports for 100 large DIHCs and (B) active engagement strategies to rescind contracts, for first movers, and recover damages, for late comers.