Our 2021 report showcases the engagement and voting activity we undertook in our mission to build sustainable capital markets and maximize value for our clients.
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2021 in Review
In 2021, we voted at nearly 21,000 meetings on over 190,000 management and shareholder proposals.
Number of Meetings Voted 20,902
Management Proposals 186,906
Shareholder Proposals 4,524
Votes on Management Resolutions by Category
Votes on Shareholder Proposals by Category
We believe that companies that adopt robust, progressive governance and sustainability practices will be better positioned to generate long-term value and manage risk. As near-perpetual holders of the constituents of the world’s primary indices, the informed exercise of voting rights, coupled with targeted and value-driven engagement, is the most effective mechanism of creating value for our clients. Accordingly, our stewardship program proactively identifies companies for engagement and voting in order to mitigate ESG risks in our portfolios.
To measure and demonstrate impact, we monitor and follow up with companies that we previously engaged with and evaluate their responsiveness to our feedback. This requires a long-term, multi-year approach to stewardship, which we believe is necessary and reflects the anticipated long-term nature of our investments into these companies.
In 2021, we voted in over 20,000 meetings and engaged with over 2,400 companies. In all, our engagement activities encompassed companies representing 73% of our 2021 equity AUM.
Comprehensive Engagements 878
Equity AUM Engaged 73%
We held 878 comprehensive engagements based on in person meetings or via conference calls. We identify target companies for engagement through multiple methods, including proprietary ESG screens and the sector and thematic priorities identified in our annual stewardship objectives.
During the year, we engaged with 280 companies across multiple industries to understand their approaches to mitigating and managing the physical and transitional impacts of climate change. This is an 89% increase in our climate-related engagements compared to 2020.
Our stewardship activities are designed to maximize impact. We use our vote and voice to influence companies on long-term governance and sustainability issues across geographical regions. We successfully worked with several of our investee companies to enhance their governance, compensation, and/or sustainability practices.
Our Asset Stewardship Team has developed our Issuer Engagement Protocol to increase the transparency of our engagement philosophy, approach and processes. This Protocol is designed to communicate the objectives of our engagement activities and to facilitate a better understanding of our preferred terms of engagement with our
To better monitor our engagement success, we are in the process of developing additional stewardship statistics and key performance indicators that we can track progress against in order to monitor the impact of our engagement process more effectively.
Climate change is a long-standing core theme of our stewardship activities. In 2021, we pushed even further.
In 2021, we believed it was more urgent than ever before to respond to growing climate risk. The latest UN IPCC report stressed the need for rapid, large-scale reductions in greenhouse gas (GHG) emissions and the “unequivocal” science behind climate change. Further, the pandemic highlighted the impact of systemic risks on global financial markets and reaffirmed the importance of prioritising such threats, including climate change, via our stewardship program. With this, we significantly increased our climate engagements in 2021 to 254, almost double that of 2020.
Number of Engagements 254
Board Governance and Oversight of Climate Change-Related Risks
Quality of Climate-Related Reporting and Discussion
Emissions Management Strategies
Investment in Technology
Public Policy Engagement
Climate Risk Disclosure
Diversity, Equity, and Inclusion
Alongside our call on gender diversity, this year we increasingly focused on addressing systemic racial inequality.
We continue to lead the market with our Fearless Girl campaign and action behind gender diversity on corporate boards. Since the launch of our campaign in 2017, 948 companies (more than 60%) of the 1,548 companies we called on have added at least one woman director.* In 2021, we further increased our focus on social equity, instituting new guidance on Racial and Ethnic Diversity Disclosure and helping to drive improved disclosure on the racial and ethnic composition of boards.
Number of Engagements 220
Goals and Strategy
Guided by R-FactorTM, our own ESG scoring system, we continued to push for long-term sustainable value creation, higher-quality reporting standards, and the more efficient allocation of capital.
During the 2021 proxy season, we started taking action against board members at companies in the S&P 500, FTSE 350, ASX 100, TOPIX 100, DAX30, and CAC 40 indices that were laggards based on their R-Factor scores and could not articulate how they planned to improve their score. R-Factor is our proprietary ESG scoring system that measures the performance of a company’s business operations andgovernance as it relates to financially material and industry-specific ESG risk factors.
Number of Engagements 401
ESG Disclosures and Practices
Case Study Engagements
Learn more on our successes and outcomes from our 2021 high-profile engagements with some of our investee companies.
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