Our Responsible Investment overlays
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Focus theme: Good Governance
Example case of a good governance engagement: Checkpoint Software
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Background: Since 2020, we have engaged with companies on diversity and inclusion (D&I), and especially focused on companies that have only a small minority or no females on their board. For diverse companies, the likelihood of outper- forming industry peers on profitability has increased over time, while the penalties are getting steeper for those lagging behind. For example, diverse teams have proven to be more likely to radically innovate and anticipate shifts in consumer needs and consumption patterns— enabling the companies to gain a competitive edge.
Our engagement with Check Point was focused on D&I topics, and our goal was to get them to increase female ratio of their Board members.
Engagement: In 2020, we sent a letter to the company encouraging it to review its approach to D&I. The company informed us that it is working on increasing their D&I disclosures, and expect the gender diversity of the Board to increase in the future. Outcome: During our engagement with the company, the Board gender ratio improved from 10% up to 20% in 2021. While this is already very positive development, we will continue our engagement dialogue until the company meets our expecta- tion of minimum 40% representation of the underrepresented gender in the Board.
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