The 30% Club Investors Group

• • • Global mission to achieve at least 30% representation of women on all boards and C-suites globally. 30% represents a critical mass from which point minority groups can impact boardroom dynamics.
    • Focus letters on FTSE350 laggards
    • Members are encouraged to promote the goals through their voting decisions.
    • Next goal: supporting the Parker Review goal for at least one person of colour on every FTSE 350 board. This will be a priority in 2021.
    • First annual report coming out in April 2021
    • Coming out with a toolkit for investors on how to drive diversity in their investments through integration and active ownership in 2021.
    • June 2021 update: Members shared some of the research we’ve done at Aviva Investors as well as key insights from Diversio. A member from CBI presented the Change the Race Ratio. The initiative is supported by the 30% Club which is a founding member. The difference is that this commitment goes further than delivering on the Parker review and the BITC race at work principles in that companies are encouraged to set targets and report on pay gaps. However, firms do have time to deliver on their commitments (reporting 2 years after signing up). A member shared how the Investment Association has put an amber warning on firms that are not disclosing on ethnic diversity. They are providing information to members from their data provider to allow members to vote.
    • 2021 outcome: Female representation at board level has progressed 38% across the FTSE 350 since we started.
    • 2022 achievements: Rolled project out to FTSE250, published DE&I reporting guide for companies
      • Since inception female representation has increased from 12% in FTSE 100 to 40% in 2022
    • 2023 targets:

      • Beyond 30% representation of women on all FTSE 350 Executive Committees, to include one person of colour by 2023

      • Beyond 30% of all new FTSE 350 Chair appointments to go to women between July 2020 and 2023

      • Beyond 30% representation of women at senior management level of FTSE 100 companies (ExCo + direct report levels).

    • https://30percentclub.org/initiatives/investor-group

FTSE 350 Votes Against Slavery

• • • Letter will be sent to non-compliant FTSE 350 companies who have failed to meet the reporting requirements of section 54 of the Modern Slavery Act 2015.
    • Ongoing, 18 out of 22 companies have now become compliant with section 54 of the Modern Slavery Act 2015.
    • The 2020 VAS engagement finished at the end of 2020. 20 out of 22 target companies became compliant with the Modern Slavery Act 2015. The two remaining companies which were non-compliant as at 31/12/20 were Frasers Group – which posted a modern slavery statement in July 2020 that had not been signed off by a director – and Pollen Street Lending – who we were unable to make contact with and who have now become Alternative Credit Investments plc.
    • Jan 2021: Rerunning engagement in 2021 with FTSE350 companies that have failed to meet the minimum reporting standards of the Act.
    • Shortlisted for ‘Stewardship Project of the Year’ award
    • Mar 2021: The engagement group realised that Safestore Holdings has its AGM taking place on 17th March so we decided to send a letter detailing this engagement in order to give the company enough time to respond ahead of the AGM. The company responded to our letter within two days having made the changes to comply with the reporting requirements. As such, the final target list was reduced from 62 to 61.
    • Letters to the 61 FTSE350 target companies were sent off last week by post and email. We have heard back from 22 companies so far, 14 of whom have made changes to now become compliant. The other eight are in the process of making changes or have asked for more time to respond. We expect these companies to become compliant soon. We will be sending out a follow up chase email at the start of next week to the remaining 41 companies.
    • May 2021: 48 out of the 62 target companies are now compliant. In the last week, Energean Oil & Gas, M&G and Indivior have all become compliant. Expecting Frasers Group, Hikma Pharmaceuticals, IAG and Premier Foods to be compliant by the end of the month.
    • June 2021 update: 49/61 companies are now compliant. Premier Foods & Hikma Pharmaceuticals have confirmed that their new statement will be available by the end of this week. Frasers Group said the new statement would be ready in April but we have yet to see this statement. We have followed up twice since them but heard nothing back. We are expecting the remaining companies to release their new statements in June & July. We have a call with Sainsbury’s on 21st June at 11am to discuss their statement and approach to modern slavery.
    • November 2021 update:
      • Ashmore Group: The company have created a new website and posted their 2020 statement onto the homepage of the website (it was previously hidden away on a sustainability page). The new 2021 statement will be approved shortly.
      • Coca-Cola HBC AG: The company is compliant however we noticed that Coca-Cola UK have an out of date statement. We contacted the company who responded very positively to our engagement, confirming that a new statement would be uploaded in the coming weeks.
      • Entain: The company published their new 2021 statement on the homepage of the website, however we spotted that this new statement was approved by the CEO & Chair, rather than the board. We contacted the company who were very grateful we raised this with them and committed to amending the statement asap. The company will send through an updated statement soon.
      • Frasers Group: The company was non-compliant at the time of their AGM in September, which led to one supporting investor voting against the financial statements – many thanks to the investor for doing this. We received a response shortly afterwards demonstrating the effectiveness of using our vote to influence corporate behaviour. The company has confirmed that they will publish a new statement within 6 months of the end of their financial year. The old statement has also been moved onto the homepage of the website.
      • JD Wetherspoon: We spoke with the Company Secretary back in September who admitted that there had been oversight by the board in failing to show that board approval had been given for the 2020 statement and rather than retroactively updating the current statement, the new 2021 statement will show that board approval has been given. This will be ready before the end of the year.
    • January 2022 update: 2021 engagement is now complete. 59/61 companies have become compliant. 13/20 respondents indicated an increased awareness of investor concern on the topic following the engagement. We renewed our membership, new letters will be sent Feb 16, 2022.
    • March 2022 update: 16 companies are now compliant. Six companies have confirmed receipt of the letter and are reviewing. 10 companies have responded but we are engaging further &/or waiting or changes to be made to the company’s 2022 statement. 12 companies are yet to respond to our engagement. Meetings with the following companies have been offered over the next few weeks: Close Brothers, ContourGlobal, Diploma, L&G, Mitchells & Butlers, Natwest Group, Segro, Synthomer & Tritax Eurobox & Tritax Big Box REIT.
    • May 2022: 29 companies are now compliant, 6 are soon to become compliant.
    • July 2022: 40 companies are now compliant.
    • December 2022: “Votes Against Slavery” engagement won Stewardship initiative of the year at the PRI awards. The engagement achieved compliance in 38/44 target companies.
    • January 2023: 38 more non-compliant FTSE 350 companies found, new target list has been established. Letters sent out to these companies. 
    • https://www.rathbones.com/sites/rathbones.com/files/imce/5558_votes_against_slavery_2021_final_16_feb_2021.pdf 

Climate Action 100+ 

• • • Letter calls for companies to take action to reduce greenhouse gas emissions, consistent with the goal of the Paris Agreement, provide enhanced corporate disclosure in line with the Task Force on Climate-related Financial Disclosures recommendations, and implement a strong governance framework that clearly articulates the company board’s accountability and oversight of climate change.
    • The 160 companies engaged by the Climate Action 100+ initiative represent over 80% of global industrial emissions and are, as a group and individually, critical to progressing the global economy to net-zero emissions by 2050.
    • In 2020, the initiative developed the Climate Action 100+ Net Zero Company Benchmark, which will be used to publicly benchmark focus companies. The first company scorecards will be released in early 2021.
    • Nearly half (43%) of companies have set a net zero by 2050 target or ambition in some form, which is an important signal to investors that companies understand and are preparing for the transition. However, only 10% of focus companies have net-zero targets that explicitly cover the companies’ most material scope 3 emissions.
    • March 2022 update: Climate Action 100+ has flagged the first wave of key shareholder proposals ahead of the upcoming 2022 annual general meetings to accelerate shareholder climate action: Berkshire Hathaway, Inc.: Proposal seeks TCFD-aligned reports on physical, transitional and other financial risks the company faces in its transition to net zero emissions. Valero Energy: Proposal calls on the company to both adopt near- and long-term GHG reduction targets aligned with the Paris Agreement goal of limiting global temperature rise to 1.5°C and present a plan of how it will achieve those goals. Imperial Oil: Proposal calls on the company to adopt a policy to cease oil and gas exploration and new development in order to align its business strategy with the pathway described in the International Energy Agency (IEA) Net Zero Emissions by 2050 scenario.
    • Our subcommittee group, which focuses on Toray Industries:
      • March 2021 update: Last meeting with Mr. Hirabayashi, Corporate Vice President of CSR & Investor Relations was Jan 27, 2021. The company plans to make a public announcement in the spring establishing a clearer & more comprehensive governance structure, setting a net zero target for 2050 for Scope1&2, and disclosing TCFD scenario analyses in terms of 1.5°C, 2.0°C, 4.0°C.
      • April 2021: Company established sustainability committee.
      • December 2022:  lead investors met with the company next week to discuss the company’s policy engagement as well as its work on Scope 3 emissions.
    • https://www.climateaction100.org/

Statement on Climate Change for Airlines and Aerospace Companies

• • Letter calls on airline and aerospace companies to implement a strong governance framework which clearly articulates the board’s accountability and oversight of climate change risks and opportunities. 
  • Establish and disclose robust transition plans consistent with the goals of the Paris Agreement
  • Provide strong corporate disclosure in line with the final recommendations of the Task Force on Climate-related Financial Disclosures
  • Signed on again for 2022

The Investor Agenda 

• • • A collaborative initiative to accelerate and scale up the investor actions that are critical to tackling climate change and achieving the goals of the Paris Agreement with the aim of keeping average global temperature rise to no more than 1.5-degrees Celsius.
    • Letters thus far include the Investor Statement to Governments on Climate Change and the Investor Statement to EU leaders on Sustainable Recovery from COVID-19.
    • May 2021 update: The founding partners of The Investor Agenda released today a new tool to enable institutional investors to step up action to tackle the climate crisis and accelerate the transition to a net-zero economy. The Investor Climate Action Plans Expectations Ladder and Guidance provides investors with clear expectations for issuing and implementing comprehensive climate action plans, including steps investors can take to support the goal of a net-zero emissions economy by 2050 or sooner. The framework aims to help investors navigate existing expectations and initiatives on climate change. It is inclusive and unique in that it sets out expectations for investors wherever they may be on their climate journey.
    • March 2022 update: sent open letter to the Prime Minister of Japan. The letter calls for decisive decarbonization action around coal reduction and clean energy increase following COP26. Letter available in the Statements and Reports tab.
    • https://theinvestoragenda.org/

CDP

• • • CDP runs a global disclosure system for investors, companies, cities, states, and regions to manage environmental impacts. It is the world’s largest, most comprehensive dataset on environmental action. At the request of investors and stakeholders, CDP supports thousands of companies, cities, states, and regions to measure and manage their risks and opportunities on climate change, water security, and deforestation.
    • June 2021 update: We signed onto the CDP’s newest engagement, the 2021 Global Investor Statement to Governments on the Climate Crisis. This year’s Statement raises climate ambition and increases the specificity of the policy asks. In particular, it asks governments not only for updated NDCs, but also to commit to a domestic mid-century, net-zero emissions target and provide clarity on the transition timetable for each carbon intensive sector.
    • https://www.cdp.net/en
      • June 2021 update: We signed onto the CDP’s newest engagement, the 2021 Global Investor Statement to Governments on the Climate Crisis. This year’s Statement raises climate ambition and increases the specificity of the policy asks. In particular, it asks governments not only for updated NDCs, but also to commit to a domestic mid-century, net-zero emissions target and provide clarity on the transition timetable for each carbon intensive sector.
      • February 2022: We signed onto the Non-Disclosure Campaign, choosing target companies that are currently or have previously been in our portfolio that have not provided CDP disclosures to, to request disclosure on the topics of climate change, water, and forests.
      • May 2022: The final number of distinct companies that will be engaged in the 2022 NDC is 1470, a 11% increase on last year’s number. The number of companies that will be targeted on Forests and Water has risen significantly by 37% and 51% respectively.
      • December 2022: CDP released new scores across Climate, Water, and Forest disclosures

FAIRR Where’s the Beef?

• • Investor statement highlighting the critical need to reduce global GHG emissions from animal agriculture, and seize the opportunities presented by COP26 to foreground protein production and consumption in the climate conversation. Urges all G20 nations to promptly enact ambitious policies and disclose effective targets for GHG reductions in agriculture within or alongside their National Determined Contributions (NDCs) commitments at COP26.
  • November 2021 update: We sent the statement to the G20 Sherpa (personal representative to the G20) and had a follow-up call with them to discuss the statement. We were also invited to give a short presentation on agriculture at a G20 meeting on Wednesday 24 November. We gave several interventions based on the statement at COP26 including a high-level presidency event on 6 November, and co-organised an event in the Blue Zone focused on the risks and opportunities in the agriculture sector on 9 November. We also raised the statement in discussions with policymakers from several governments and multilateral organisations, including with the UK COP26 Presidency and the FAO. We also raised awareness through global media coverage about the investor statement from the Independent, Business Green, Investment Week, Forbes and Food Navigator.
  • https://www.fairr.org/wheres-the-beef/

FAIRR Unpacking Labour Risk in Global Meat Supply Chains

• • The companies in this engagement employ over half a million workers in the meat industry. Companies do not effectively empower employees to report such risks, largely lack proper oversight of workers in their value chain, and fail to disclose important labour metrics publicly. This engagement focuses on seven of the world’s largest animal protein producers. Engagement focuses on the need to strengthen labour standards and corporate practices among animal protein producers beyond the pandemic to mitigate labour risk in the industry.
  • Q1 2022: Phase 2 open for signing
  • March 2022 update: Letters sent to Sanderson Farms, Tyson, JBS USA, BRF, Marfrig, Cranswick, WH Group. 
  • July 2022: we have scheduled calls with 6 of the 7 target companies. We have delivered 5 of those dialogues, pending only the call with Tyson Foods scheduled for August. Sanderson Farms is the only company that remains unwilling to participate in the dialogues. Progress report for Phase 2 and individual company assessments will be published in October.
  • https://www.fairr.org/

FAIRR Sustainable Protein Supply Chains

• • • Letter calls on multinational food retailers and brand manufacturers to develop an evidence-based approach to diversify protein sources away from an over-reliance on animal proteins.
    • Ongoing, phase 5 is now underway, asking 25 global food retailers and manufacturers to publicly disclose their intentions for transitioning protein portfolios towards lower impact and more sustainable sources. Letter being sent January 26.
    • September 2021 update: Phase 5 finished. All 25 companies in FAIRR’s engagement now recognise the importance of protein diversification as a material issue for their business. This is in sharp contrast to 2016, when no company was talking about protein, let alone thinking around the commercial and climate opportunities associated with alternative proteins. Public report available in “Statements and Reports”.
    • October 2022: Climate Transition Proteins: Flavour of the Future report released (available in the Statements and Reports tab of our website)
    • https://www.fairr.org/

FAIRR Global Investor Engagement on Meat Sourcing

• • • Letter calls on fast food companies to de-risk their meat and dairy supply chains against climate and water risks
    • Ongoing, milestone reached by engaging six companies
    • 2021 focus continuing on these six companies
    • May 2022:  In the final stages of updating the six company assessments and will be releasing a final progress report in mid-June of 2022.
    • June 2022: Phase 3 progress report released (available in the Statements and Reports tab of our website)
    • https://www.fairr.org/

FAIRR Overuse of Antibiotics in Protein Supply Chains engagement

• • • Antimicrobial resistance (AMR) is now globally acknowledged as a fundamental threat to public health and the global economy. Animal agriculture and factory farming are the largest consumers of antibiotics globally and a key contributor to AMR. It is projected that by 2030, antibiotic consumption in farm animals will rise by 67%.
    • Engaging with 20 companies on their overuse of antibiotics in their protein supply chains.
    • November 2022: First progress report is released (available in the Statements and Reports tab of our website)
    • https://www.fairr.org/ 

Engagement with Social Media Companies 

• • • Letter calls for social media companies to strengthen controls to prevent the live streaming and distribution of objectionable content
    • Ongoing, several milestones reached. Organisers of initiative have met with target company representatives on several occasions. The target companies appear to be in the process of strengthening controls.
    • The engagement has been covered by the Financial Times, Responsible Investor, Investor Strategy, Financial Standard and The Logic , Newsroom and NZ Herald
    • NZ Crown-owned investors have committed to an additional 12 months (to mid 2021) of leading engagement with these companies.
    • January 2021: Next focus is board-level accountability and strengthened governance
    • May 2021 update: As a direct result of the engagement,  the charter for Facebook’s Risk and oversight Committee has been updated to state that the Committee will review with management at least annually the company’s assessment of the ways it can be used to facilitate harm or undermine public safety, including through the sharing of content on its services.
    • October 2021: Engagement concluded. Final report in “Statements and Reports”.
    • https://www.nzsuperfund.nz/how-we-invest/responsible-investment/collaboration/social-media-collaborative-engagement/

Brazil Anti-corruption Engagement

• • • Letter calls on 19 companies to substantially reduce corruption and bribery
    • Ongoing, milestone reached as currently arranging meetings with nineteen target companies
    • April 2020 update: Temporarily suspended due to COVID-19
    • January 2022 update: engagement completed

Global Investor Statement to Governments on the Climate Crisis

• • • Letter sent to governments as a unified call from investors for governments to raise their climate ambition and implement meaningful policies, including mandatory climate risk disclosure, strengthened national commitments, ending fossil fuel subsidies and phasing out thermal coal
    • Collaboration between CDP, the Investor Agenda, and IIGCC.
    • September 2021: Second wave of signatories to the statement are being announced during the United Nations General Assembly, which will be followed by Climate Week 2021 in New York, when countries will be in the spotlight to demonstrate their climate ambition. 
    • October 2021: 2021 Global Investor Statement to Governments on the Climate Crisis released.
    • March 2022 update: Signed onto 2022 letter
    • https://www.iigcc.org/resource/global-investor-statement-to-governments-on-climate-change/

Access to Medicine and SDG3

• • • Letter calls on pharmaceutical companies to access new markets and increase reporting
    • Ongoing, milestone reached by engaging nineteen companies
    • June 2021: Signed onto updated letter stating that we will review and take into account the analysis generated from the Access to Medicine Index as appropriate in the ESG analysis we conduct on the companies we invest in.
    • From 2022 to 2026, the engagement’s scope will expand to cover a total of five healthcare sectors: Big Pharma, generic medicine manufacturers, vaccine manufacturers, diagnostic companies and medical gas companies.  
    • May 2022 update: With specific regard to their Access to Medicine Index report card, thus far 34% (12) of opportunities received a positive response from companies, 31% (11) of opportunities received a neutral response from companies, 9% (3) of opportunities received a negative response from companies, 26% (9) of opportunities were not addressed by the response from companies.
    • Access to Medicine 2022 Index released (available in the Statements and Reports tab of our website)
    • https://accesstomedicinefoundation.org/

Investor Support for Deforestation-free Procurement Acts in the U.S.

• • • Legislatures in both NY and CA are considering legislation to support Deforestation-Free Procurement by the government. The Bills require certain government contractors and subcontractors to have “No Deforestation, No Peat, No Exploitation” (NDPE) policies and do some public reporting on their forest-related practices. The 2021 letter calls for the development of and compliance with NDPE policies, drive transparency, and potentially lead to deforestation-free government bonds — all to the benefit of investors.

Cerrado Manifesto Statement of Support

• • • Partnered with FAIRR, the Statement demonstrates to agricultural producers operating in the Amazon’s Cerrado region that there is market and capital support for zero deforestation.
    • https://cerradostatement.fairr.org/

PRI Investor Working Group on Sustainable Palm Oil

• • • Unified investor voice in support of sustainable palm oil and the Roundtable on Sustainable Palm Oil, engaging with companies in support of more sustainable practices.
    • Ongoing, milestone reached: 35 letters have been sent, 27 companies have responded, over 15 meetings have taken place.
    • November 2020: Following the recent UK consultation on deforestation supply chain due diligence requirements from companies, today the UK’s Department for Environment, Foods & Rural Affairs has confirmed they will move ahead with the introduction of this legislation. In addition the EU Commission are also looking for high-level input into potential demand-side measures they can use to address imported deforestation and degradation.
    • https://www.unpri.org/sustainable-land-use/pri-investor-working-group-on-sustainable-palm-oil/5873.article

SEC petition against raising resubmission thresholds for shareholder proposals

• • • The SEC plans to raise the resubmission thresholds for shareholder proposals in the U.S. from the current 3%/6%/10% to approximately 6%/15%/30%, investors are invited to submit public comments.
    • Ongoing

CDP – Science Based Targets Initiative

• • • The Science Based Targets Initiative (SBTi) provides companies with a roadmap for reducing their carbon emissions, including how much and how quickly they need to reduce emissions. SBTi offers offers a range of target-setting resources and guidance, and independently assesses and approves companies’ targets in line with its strict criteria.
    • In partnership with the SBTi, this investor initiative involves a letter sent to target companies that encourages them to sign the SBTi Business Ambition for 1.5°C Commitment letter, which is the mechanism for formalising the commitment to reach net-zero emissions by no later than 2050. 
    • Sept 29 2021: CDP publicly announced the campaign to the media. The campaign was supported by 60% more financial institutions than last year and the engagement focuses on 1600+ companies. In the last campaign 96% of companies said that investor pressure influenced their decision to join the Science Targets.
    • December 2021: Since the launch of the campaign on September 8, 2021, 79 companies in the campaign sample have joined the Science Based Targets initiative. The majority joined leading up to COP26 taking place in November, joining the 2200+ SBTi companies committed to align their business with the Paris Agreement.
    • May 4 2022: renewed our membership for new cycle
    • September 2022: Final progress report for 2021-2022 released (available in the Statements and Reports tab of our website)
    • October 2022: Third annual campaign launched. 318 financial institutions and multinational firms with $37 trillion in assets and spending power are calling on over 1,000 of the world’s highest impact companies globally to set 1.5°C aligned science-based targets through the Science Based Targets initiative. The 1,000 companies targeted are critical for global efforts to limit global warming to 1.5°C, which are the source of 7 gigatons of Scope 1 and 2 emissions – equivalent to India and the United States combined.
    • https://www.cdp.net/en/investor/engage-with-companies/cdp-science-based-targets-campaign

Transition Pathways Initiative (TPI)

• • • TPI was formed in 2017 by Asset Owners, following the 2015 UN Paris Climate Agreement.
    • TPI carries out assessments on Management Quality and Carbon Performance. The Management Quality assessment reviews how a company is managing their own greenhouse gas emissions and the opportunities/risks associated with the transition. The Carbon Performance assessment involves benchmarking a company’s emissions pathway against the Paris pledges as well as below 2 degrees and 1.5-degrees scenarios.
    •  TPI has grown since itsformation in 2017, it is now supported by over 120 Asset Owners, Managers and Service Providers with more than $45 trillion in Assets Under Management and Advisement. TPI publishes data across 16 high carbon sectors, including Airlines, Autos, Mining, Steel, Chemicals and Electrical Utilities, covering 480 companies.
    • https://www.transitionpathwayinitiative.org/