Liontrust Sustainable Investment Annual Review 2021 - International - Report - Page 34
2019 engagement highlights
Board gender diversity: Over the last four years, we have seen
meaningful progress on board gender diversity for companies
in our strategies, and although there are other external factors,
we believe our voting and engagement with these companies
has contributed to improvements.
In 2016, we began withholding support for companies that
are not sufficiently gender diverse. Where companies had
fewer than 15% women on the board, we voted against the
annual report and accounts at the AGM and abstained where
this was greater than 15% but fewer than 30%. In 2019, we
used the same process but instead focused on the resolution to
re-elect the Chair of the Nomination Committee.
Twenty one companies in our strategies have increased the
proportion of women on the board to over 30%, such that we
no longer need to withhold our support. After voting, these
companies now have an average of 38% female boards,
compared to just 22% before we began voting.
A further 15 companies in our strategies have increased the
number of women on their boards, and we remain positive
that continued efforts through voting and engagement on
this issue should result in further progress. After voting, these
companies now have an average of 26% female boards,
compared to just 17% before we voted on this issue.
There are 13 companies where we have seen less progress
on increasing the gender diversity on boards so we will
continue to engage and vote in order to effect real change.
2019, which aims to improve the quality of jobs globally.
The WDI is pressing companies around the world to disclose
better data on how they manage staff and their supply chain
workers. The data cover issues such as health and safety,
workers’ rights, diversity and wage levels. The fact there are
too many poor-quality and precarious jobs around the world
is recognised in the UN’s Sustainable Development Goal 8,
which calls for decent work for all. Through the Initiative, our
team will encourage companies held across our strategies
to disclose data to the WDI. In 2019, we requested that
15 companies disclose data to the Initiative. One company
confirmed it would submit data and we are following up
with other companies as we continue our efforts to improve
public disclosure on worker-related issues during 2020.
Staff and the gig economy: Treatment of staff continues to
be a key engagement issue, particularly in light of growing
concerns about the poor employment standards of the socalled ‘gig economy’. We met Gym Group several times, for
example, to ensure it is treating its trainers fairly. The company
must balance the needs of its trainers, ensuring they have
the opportunity for full employment with associated rights,
while also recognising some wish to remain self-employed.
The company trialled a new arrangement in eight gyms and
has since rolled this out across the company. Gym Group’s
commitment to people earned the company a Gold Award
from the Investor in People Group and it was also named in
the Sunday Times’ 100 Best Smaller Companies to Work For’,
highlighting its commitment to being a first-class employer.
Workforce Disclosure Initiative: Liontrust become a signatory
to ShareAction’s Workforce Disclosure Initiative (WDI) in July
Money laundering: We engaged with a number of our
financial holdings on money laundering, investigating
how these businesses are ensuring they avoid falling foul
of any criminal activity after some high-profile cases over
the year.
Voting summary 2019
In 2019, we voted at 98% (137 of 140) of votable meetings and
voted against management or abstained on proposals in at least one
vote in 62% (87 of 144) of votable meetings. In 2019, we voted to
abstain or voted against:
Re-election of chair
Remuneration
27
29%
The re-election of the Chair of the
Nomination Committee (which
related to gender diversity, as
per the section above)
Ratification of auditors
42
17
31
30%
of eligible
meetings
65
Re-election of directors
40%
of eligible
meetings
71
The approval of the
company’s remuneration
report/compensation
34 - Liontrust Sustainable Investment: Annual Review 2019
16%
of eligible
meetings
64
The re-election of one or more
company directors (due to lengthy
terms of office, bundled director
elections or lack of independence)
of eligible
meetings
89
The ratification of auditors/
authorisation for the Board to fix
remuneration of external auditors
