17
Active ownership
Introduction
ESG integration
Climate change
Partnership with Prudential
Community and people
A final word
Company engagements Engagement with investee companies is core to our active ownership responsibilities. We aim to encourage business and management practices that support positive enhancement of material ESG traits or mitigation of material ESG risks across our holdings. We do this using constructive engagement based on our in- depth knowledge of our investments in the context of their business environment. Our investment teams evaluate material ESG risks, which may differ across companies, sectors, and asset classes. The level of engagement will therefore vary based on materiality, the size of investment, and the nature of the risks themselves. As long-term investors we adopt a patient timeframe, as we believe that this can improve the probability of achieving value-added outcomes. Engagement can be for a variety of purposes, such as for fact-finding or in response to specific ESG controversies. By better understanding an issuer’s approach to material ESG risks and opportunities, these insights can be incorporated to create a holistic view of a company’s investment profile. Engagement can also be undertaken to encourage improvements within an issuer itself. Our process incorporates a range of milestones reflecting time-bound expectations regarding acknowledgement of issues, strategy development, implementation, and reporting and disclosures.
Eastspring Asia engagement heat map
Our engagement footprint As experts in Asia, the investment teams in our LBUs across the region leverage long-standing relationships with investee companies in the markets in which we operate to engage on material ESG issues. The purpose of these engagements, which are long-term in nature, is to ensure that the issuer understands and manages material ESG risks in a suitable way and to a timeframe that meets our expectations. Where appropriate, we will work with issuers to address material ESG risks, acknowledging a company management’s speciality knowledge in their field.
Environmental
Social
Governance
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