Public Equities

Partnering With a Dutch Client to Enhance Investee Companies' ESG Practices

2 min read

Our Dutch client has been a long-standing partner of the firm with an emerging markets equity mandate managed since 2003 that currently stands at $1.4 billion.

We have received a prescribed carbon budget which is linked to their net-zero strategy, and have discussed their stewardship preferences. On engagement, the client has a system to rate underlying companies as ESG leaders or laggards, and we have received instruction to prioritise engaging with laggards to improve fundamental ESG practices, as well as ESG topics to streamline stewardship efforts alongside other managers. Example engagement objectives include improving whistleblowing procedures and board diversity.

Outcomes included:

  • The provision of data coverage capturing engagement activity and progress.
  • The agreement to spin out a portion of the portfolio into another segregated mandate to allow for the more flexible application of ESG-related restrictions, e.g. the reduction of fossil fuels.

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