As a signatory of the PRI, Engagement International believes in the importance and value of incorporating environmental, social and corporate governance (ESG) factors in investment decisions. Active ownership engagement and investment consulting services are the main responsible investment solutions that Engagement International is providing to pension funds, municipalities, foundations and other institutional investors. Internationally recognised guidelines and responsible investment practices, ESG and corporate sustainability standards are embedded in the underlying methodology to guide operational procedures as well as quality assurance of the deliverables to clients.
Engagement International is collaborating with MSCI ESG Research and developed various sets of ratings for evaluating a company’s management efforts on ESG incidents, material ESG issues, general sustainability and corporate governance setup, as well as selected E, S or G themes such as systemic matters like climate change and corporate tax. The purpose is to reflect a company’s current status of ESG risks & opportunities, as well as the management thereof, to measure how much and in which direction progress has been achieved since day one of the engagement. Based on a combination of ESG data, insights collected during the engagement dialogues together with the underlying proprietary milestone assessment’s KPIs, Engagement International provides the clients with clear and visible results of the engagements conducted on their behalf with portfolio companies around the world via face to face meetings, conference calls and emails. The created client portfolio reports together with the company engagement reports and investment signal reports indicate each client the extent to which a company in her/his portfolio is aligned with the client’s commitment to responsible investment.
Engagement International’s responsible investment consulting may cover all elements of full-service engagement: 1) helping clients with formulating a responsible investment policy and advising on the corresponding necessary set up, 2) providing due diligence of client portfolios twice a year, 3) conducting engagement dialogues (as outlined above), 4) engaging with the clients’ stakeholders such as beneficiaries, asset managers, media etc., and 5) assisting clients with their responsible investment related reporting obligations. Last but not least, in collaboration with the partner Minerva Analytics, Engagement International is also offering proxy voting services and voting recommendations for AGMs to clients as well as monitoring of the clients’ asset managers’ investment decisions and AGM voting behaviour. In addition to Engagement International’s main business activity of providing engagement services to institutional investors like just described, Engagement International also offers bespoke solutions, e.g. to support the clients’ own engagement efforts.
All services have in common that they enable the clients to become part of a solution to the world’s sustainability challenges instead of fuelling problems. This way, stewardship creates long-term financial value and a licence to operate among the clients’ stakeholders.