We have ongoing dialogue with companies in the funds within important areas. This may involve anything from corporate governance to social or environmental issues. This dialogue is important to enable us to determine whether a company’s operation is responsible and will deliver a sustainable return for our customers.
For our work within active ownership to be successful, there must be a close link between the dialogue held and exclusions. Thus we often continue to maintain a dialogue with companies that we have excluded to challenge them to develop further and so that we can invest in them again when they have shown progress. We also prioritise devoting resources for broader cooperation within investor groups and fora that are available via, among others, UNPRI, Climate Action 100+, FAIRR, etc.
We are contributing through collaboration to both improving individual companies and to raising standards and achieving permanent change. This is the key to long-term, successful asset management.