Q2 2020 spotlight on
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES REPORT
Hanneke Smits, CEO, and Lloyd McAllister, responsible investment analyst discuss our latest Task Force on Climate-related Financial Disclosures (TCFD) report.
Highlights from Q2 2020
- We voted at
Annual General Meetings
Extraordinary General Meetings
on behalf of our clients
- We engaged with
for the primary purpose of raising ESG concerns
Examples of engagement with companies included matters such as:
- supply chains
- climate change
- auditor tenure
- human capital management
- environmental solutions
Voting profile: Q2 2020
During the quarter, we exercised our clients’ voting rights at a total of 292 shareholder meetings.
Across all regions, votes were instructed against management recommendations on 681 separate resolutions, which equated to 53% of the 292 meetings.
1 In favour of management on all resolutions.
2 Against management on one or more resolutions.
3 Took no action owing to share blocking.
took no action3
in favour of management1
Key issues of concern
ESG quality reviews
We conduct quality reviews analysing the separate ESG aspects of all companies our global sector analysts are considering recommending for investment. These quality reviews are undertaken by our responsible investment team who award an ESG rating score out of 10. Each quarter key issues of concern are identified and are closely monitored by our responsible investment analysts.
Lack of progress by North American companies in addressing compensation structures that allow executives to be rewarded for poor performance.
Absence of substance and action following support given to the US Business Roundtable’s statement on corporate purpose.
Short-term decisions taken in relation to employment matters at the expected expense of long-term performance.