Ownership

The fund has a small stake in around 9,000 companies across the globe. We manage our responsibilities and exercise our rights as an owner. Our aim is to promote long-term value creation at companies, as the fund’s future value depends on the long-term value creation in the companies the fund is invested in.

Voting at companies

Voting is the most important tool we have for active ownership. Through our voting, we seek to strengthen governance, improve financial performance and promote responsible business practices. We hold boards to account for their decisions, and we consider who should sit on the board. Our voting guidelines provide a principled basis for our voting decisions, but we also take account of company-specific factors.

Dialogue with companies

We are in dialogue with companies, and we raise governance and sustainability topics relevant to our long-term return. We prioritise our largest investments, where we know the companies best. We have a regular dialogue with these nearly 1,000 companies, which make up around two-thirds of the total value of the equity portfolio. In addition, we publish expectations and positions which are relevant to all of the companies in our portfolio, and we engage with individual companies on our strategic priorities and specific developments.

Company follow-up

We work with companies, investors and other stakeholders to advance standards, increase the information available to investors, and promote responsible practices. This is particularly important when many companies in an industry face the same challenges. We have a particular interest in the risks and opportunities associated with climate change, water management and children’s rights, and have formulated clear expectations of companies in these areas. We have also published expectations on how companies should address human rights, tax and transparency, corruption and ocean sustainability. We expect companies to integrate material risks in these areas into their business strategy, risk management and reporting. We are constantly developing our understanding of these areas and the impact they could have on the companies in the portfolio. Our work has given us a better basis for assessing companies’ strategies and engaging with their boards. 

Last saved: 05/06/2019

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