As an active owner, we employ a variety of engagement tools depending on the issuer, the issue being discussed and the accessibility of the issuer. Since our engagement efforts with a given issuer typically span a multiyear period, it is common to utilize multiple methods of engagement. such as one-on-one meetings with company management teams, formal written communication, proxy voting and industry collaborations. While the overwhelming majority of our engagement is done in collaboration with companies and their management teams, we strongly believe that the exercise of shareholder rights prescribed in regulations and company bylaws are part of our responsibility in the pursuit of value creation and the protection of our clients’ investments. We believe escalation should not be a top-down dictated approach, but rather
investment-driven, taking into consideration matters such as investment objectives, issuer-specific circumstances and our history of engagement. Where a company does not respond to our concerns or our concerns have not been sufficiently addressed, we may take escalated action such as withholding support from directors, supporting a shareholder proposal, sending letters to the board of directors, making our concerns public, or joining a collaborative initiative, amongst others. The escalation tools leveraged will depend on the rights available to us and the circumstances of the case in question. Importantly, escalation methods are not exclusive and when an escalation method is utilized, we continue to seek to drive change through private one-on-one engagements.
ENGAGEMENT OVERVIEW
PRIMARY ENGAGEMENT TOPICS
• Green opportunities • Environmental reporting • Pollution and mitigation management • Waste/water management • Community/government relations • Human capital management • Labor relations • Workforce diversity • Health & safety • Long-term business strategy • Capital structure • Risk management • Board independence and quality • Disclosure and financial control • Compensation structure
TOP ENVIRONMENTAL TOPICS
PUBLIC EQUITY
3,162 TOTAL ENGAGEMENTS
TOP SOCIAL TOPICS
26% ENVIRONMENTAL
67% SOCIAL
60% GOVERNANCE
TOP GOVERNANCE TOPICS
FIXED INCOME
1,463 TOTAL ENGAGEMENTS
50% ENVIRONMENTAL
49% SOCIAL
76% GOVERNANCE
*“One engagement can extend across environmental, social and governance categories.”
42 2021 ESG ANNUAL REPORT
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