RPIA SUSTAINABILITY REPORT 2022
OVERVIEW FIRM
31
INVESTMENT MANAGEMENT
Aerospace December 2022
Governance
We engaged with an aerospace company, discussing ESG issues with two senior members of the organization. The primary goal of our engagement was to understand current environmental efforts and how the company has continued to be vigilant as it relates to governance issues.
Engagement Focus
Safety: Sustainalytics scores this issuer low on product governance risk management compared to its peers due to missing important best practices measures. However, as a part of our independent internal research, we identified disclosures from the issuer about their safety management system implementation, certification requirements from suppliers, and commitments to training its employees. Environment: The issuer hopes to achieve net zero by 2050 through various decarbonization pathways, including Sustainable Aviation Fuel (SAF). During our engagement, we learned that due to regulatory infrastructure constraints outside of their control, they do not have full control of the SAF pathway.
Outcome
Our engagement with the company gave us comfort that these issues are being monitored and addressed. We will continue to engage with them if we feel that these ESG issues challenge the risk priced into the securities.
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