To find out how companies are performing on integrating ESG factors, fund managers may meet or consult executives and directors. The information they gather could influence the way they vote at shareholder meetings. For example, they may vote against a proposal if the company has not responded to questions about ESG issues or it they feel it is not acting in the long-term interests of its shareholders.
This process of engaging with company executives is known as stewardship, and its aim is to promote the long-term success of investments.
We carefully monitor the funds we offer through our Workplace Investments, and we expect all the fund managers we work with to outline how they engage with companies on ESG issues. In addition, we require them to measure the effectiveness of their strategy for engaging with companies in terms of how it. We also encourage fund management companies to become signatories of the PRI and the UK Stewardship Code.
Each of the fund management companies we work with is expected to have a shareholder engagement policy that complies with the EU’s Shareholder Rights Directive II. This directive is designed to encourage greater transparency on stewardship issues and make it easier for investors to understand their investments.
Shareholder Engagement Policies
In the list below you will find website links to the shareholder engagement policies of the fund management companies whose funds are available through the Workplace Investing Platform. This should also detail how they implement these policies.
List of links (click on name to take you to the information)