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Active ownership
Introduction
ESG integration
Climate change
Partnership with Prudential
Community and people
A final word
Additional thematic engagements In 2022, we also undertook additional thematic engagements within the year’s activities as a response to client requests. We investigated severe controversies of selected holdings in our portfolio and gave recommendations on how senior management and board of directors can improve to reduce potential liabilities. provided recommendations to senior management and board of directors on how they can improve standards and behaviours in order to reduce potential liabilities. A small subset of nine companies in our portfolio were flagged for severe controversies. We have reviewed and engaged with all companies and will continue the engagement into 2023.
institutions can reduce their Scope 3 carbon emissions, and subsequently their contribution to climate change, by being discerning with their lending books, particularly on those that relate to the expansion of fossil fuel extraction projects. We have reviewed and engaged with five banks to assess their lending policies to hard-to-abate sectors. Key criteria for assessment include lending policies to new fossil fuel customers or new projects and promoting 2°C aligned activities through issuing green, transition, and sustainability bonds as well as other financial instruments. Two of the banks have satisfied our criteria fully whilst the remaining three are at various stages of engagement, with engagements to continue into 2023.
Business ethics This series of thematic engagements was undertaken as a response to a request by our investment teams. Business ethics, also known as corporate behaviour, refers to the moral standards of what is right, wrong, and appropriate in the workplace. It essentially prescribes the code of conduct for doing business. We investigated severe controversies of selected holdings in our portfolio and, as part of our engagement,
Bank-lending for fossil fuels
Banks are the lifeblood for a vast majority of companies requiring funding and capital expenditure. As such, they are instrumental to help fund and accelerate the decarbonisation journey committed by companies. At the same time, banks can set policies to limit the funding of activities that are detrimental to long term global economic growth. These financial
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