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Nilgosc


Engagement and Initiatives

Engagement

NILGOSC acknowledges that good environmental, social and corporate governance (ESG) practices can have a favourable impact both on financial performance and society in general. Accordingly, NILGOSC requires its active investment managers to monitor best practice in this area and ensure that ESG considerations, where relevant, are taken into account in the investment management process. All active fund managers are instructed to engage, on NILGOSC’s behalf, with those companies where ESG policies fall short of acceptable standards and where this is likely to have a detrimental effect on the long-term value of the company.

In 2010 NILGOSC also commenced direct engagement with the UK companies in which it holds shares. NILGOSC writes to all UK listed companies when it has voted against resolutions at the Annual General Meeting (AGM) to outline the rationale for the decision. NILGOSC aims to write to these companies in advance of the meetings to make the engagement as effective as possible. In January 2015, NILGOSC began issuing engagement letters to other European listed companies, as well.

UNPRI

In order to demonstrate its commitment to responsible investment practices, NILGOSC is a signatory to the United Nations Principles of Responsible Investment.  NILGOSC collaborates with other like minded investors through the UNPRI on engagement initiatives.  NILGOSC also reports on its implementation of the Principles for Responsible Investment through the UNPRI reporting framework on an annual basis.

Link to PRI (*PDF, 172kb)

 

Initiatives

NILGOSC aims to promote effective stewardship and engagement with companies by participating in collaborative engagements and initiatives, with UNPRI signatories through the UNPRI collaboration platform or with other investor groups. A list of recent initiatives NILGOSC has been involved in is set out below:

  • Signatory to Global Investor Letter to G7 and G20 Governments on Climate Change 2017
  • Signatory to CDP’s 2017 Climate Change, Water and Forests campaigns and the Carbon Action initiative.
  • Signatory to the Global Statement on Investor Obligations and Duties.
  • Signatory to company-investor letter calling stock exchanges to put in place voluntary guidance for issuers on reporting ESG information by the end of 2016 - Led by Allianz Global Investors, and supported by the PRI and the UN Global Compact.
  • Collaborative engagement on water risks in agricultural supply chains - group comprising UNPRI signatories.
  • Signatory to global investor statement to the International Organization of Securities Commissions (IOSCO) Secretariat and its Executive Board on sustainability disclosure - facilitated by UNPRI, CERES and UNEP FI.
  • Collaborative engagement on director nominations - group comprising UNPRI signatories.
  • Signatory to the UK Pension Fund Guide to Responsible Investment Reporting in Public Equity.
  • Co-filed two shareholder resolutions proposed at the 2015 AGMs of Royal Dutch Shell plc and BP plc requesting increased disclosure on climate risk. Both company boards recommended shareholders vote in favour of the proposals and the resolutions passed with each receiving over 98% shareholder support.
  • Co-filed two shareholder resolutions proposed at the 2016 AGMs of Rio Tinto plc and Anglo-American plc.  These also requested increased disclosure on climate risk. Again, both company boards recommended shareholders vote in favour of the proposals and the resolutions passed, receiving over 98% and over 95% shareholder support respectively.

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