Stewardship and responsible investment report

The physical impacts of extreme weather – and the policies and infrastructure changes we’ll need to reduce emissions – are disrupting financial markets and ‘business as usual’. We focus our stewardship efforts on encouraging business transformation that supports the goals of the Paris Agreement and a net zero emissions future, while building resilience to the physical risks of climate change.

Climate engagements: 278*

• Net Zero Stewardship Programme: Evaluating and monitoring transition plans and reporting our progress
• EDF: Acute physical risks require climate adaptation
• Shell: New CEO raises questions about long-term climate strategy

* Number of engagements is often higher than number of companies engaged as multiple ESG issues could be discussed with one company in the same meeting.          

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Companies succeed when everyone has an opportunity to participate and be productive members of society. We are helping to shape a just transition, asking companies to promote economic equality and protect the vulnerable as they work towards a sustainable future.

Social and financial inclusion engagements: 113

• Published a just transition paper on social housing with Friends Provident Foundation
• Worked with our client Border to Coast to engage with large UK banks and CLP Holdings
• Supported shareholder proposals at Chevron, Amazon and ExxonMobil

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We expect companies to enable and support healthy employees, customers and communities. We encourage greater transparency and positive social outcomes.

Health engagements:142

• Supporting CCLA’s workplace mental health benchmark
• Engagement with Rentokil on improving employee mental health
• Lead investor engaging with Roche, supporting affordable access to medicines

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Artificial intelligence, data privacy, censorship and the ever-increasing growth of technology are issues we expect companies to scrutinise and plan for. In a rapidly evolving digital world, we support several initiatives to strengthen cyber resilience and the ethical application of technology in the companies we invest in.

Innovation, technology and society engagements: 19

• Published an update on our cyber security collaborative engagement
• AbbVie adopts our best practice guidance in updated disclosures
• Voted for shareholder proposals asking for more transparency at big tech companies

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Good governance, a healthy workplace culture and a diverse workforce create resilient businesses and support inclusive decision making. We expect companies to have strong boards, appropriate pay structures, and robust audit and accounting procedures.

Governance and corporate culture engagements: 197

• Engaging with Glencore on remuneration and health and safety
• Progress on gender diversity at Bandai Namco in Japan
• Ferrexpo makes progress on ethnic diversity targets

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We aim to understand the impact of our investment decisions on biodiversity and the associated dependencies, risks and opportunities. We have started to engage with companies to improve their stewardship of nature, encouraging them to enhance their knowledge, management and disclosures to protect our environment.

Biodiversity engagements: 32

• Outreach to UK house builders on meeting biodiversity net gain requirements
• Grosvenor has ring-fenced funding for biodiversity net gain management in projects for which it has full control
• Joined Nature Action 100, a collaborative engagement initiative addressing biodiversity loss globally

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