In relation to ESG matters, how do you engage and influence companies that we invest in?

We believe effective stewardship can play a role in improving investee companies’ ESG practices as well as enhancing the long-term risk-adjusted returns of investments. Voting and engagement are important avenues to influence companies in which we invest.

Engagement seeks to have a positive influence on outcomes, rather than merely avoiding investments that rank poorly, or companies with sub-standard existing practices. In some cases, engagement with poor-ESG credentialed companies can promote change and yield strong investment returns as those companies’ ESG practices improve.

We expect our investment managers to promote good ESG practices and improve ESG outcomes by engaging with companies on our behalf. This may be either through dialogue with senior company management or by exercising voting rights for the benefit of GESB members.