Liontrust Sustainable Investment Annual Review 2021 - International - Report - Page 33
Target outcome
Highlights
SUCCESS
Collaborate with other investors to look at
best practice on corporate disclosure on
impact and SDGs.
• Appraised several external research providers for impact metrics and
data for the strategies.
Direct engagement with holdings on
improving disclosure of impact metrics and
what SDG targets the company is aiming
to contribute towards.
• We engaged with 44 companies to better understand their approach
on impact/SDG disclosure.
SUCCESS
Encourage companies to adopt strategies
to reduce plastic pollution.
• We engaged with four companies on their plastic pollution strategies.
Although we see general progress in their approach, we do not feel that
our engagement has materially contributed to overall plastic pollution
reduction and will therefore continue to engage.
PARTIAL
SUCCESS
Assess portfolios for companies with
weak policies or systems on bribery and
corruption and engage to improve.
• We engaged with two companies on the systemic risks of money
laundering in the financials sector and are now more confident in their
ability to mitigate the risks associated with bribery and corruption.
ONGOING
• Engaged with 17 companies on the climate crisis to ensure they have
strategies in place to reduce absolute carbon emissions at a rate
consistent with limiting global warming to 1.5 degrees.
• We are more confident in our holdings’ ability to mitigate risks stemming
from bribery and corruption.
NOT MET
Collaborate with an NGO on an initiative
related to financial services bribery and
corruption.
• We were unable to set up a planned collaborative project with a
leading NGO.
Engage with companies on how they
manage human capital and encourage
best practice and worker-related KPIs.
• We engaged directly with 27 companies on supply chains and
employee-related issues.
SUCCESS
Maintain relationships with NGOs and
keep up to date with initiatives in the sector,
including signing up to the Workforce
Disclosure Initiative and encouraging
companies to disclose data on employees
and workers in the supply chain.
• We signed up to the Workforce Disclosure Initiative (WDI) and ensured
this was not just our team but Liontrust Asset Management Plc.
SUCCESS
Look at new ways to encourage companies
to improve gender and ethnicity profile of
boards and senior management.
• Stepped up voting to target the re-election of the Chair of the Nomination
Committee where gender diversity on the board is less than 30%.
Engage and vote where diversity is lacking.
To better understand the responsible
investment policies of insurance and
investment companies held in the
strategies, and ensure they are stepping
up efforts to become more responsible
with regards to unsustainable activities
such as investing in fossil fuel projects.
• We will engage with companies where we feel there are either
industry-related risks or company-related concerns or controversies.
• We requested that 15 holdings disclose data to the initiative.
• One company confirmed it would sign up, and we continue to engage
with those that did not sign up in 2019.
SUCCESS
• Gathered data to review the progress over the last four years of targeted
voting and engagement on board gender diversity (2016-19).
• Over this time, 36 companies in the strategies increased board gender
diversity. We were able to support 21 companies where board gender
diversity was previously less than 30%. These companies had an
average of just 22% female boards but now have an average of 38%.
• We engaged with six insurance companies on their responsible
investment policies and have a better understanding of how they
implement them.
SUCCESS
Liontrust Sustainable Investment: Annual Review 2019 - 33
