<p>Investment stewardship</p>

Climate change

Climate change is posing material challenges to companies around the world. At the same time, companies can benefit from the opportunities that arise from the anticipated shift to a low-carbon economy.

Natural capital and ecosystems

Many businesses depend on natural resources for their products and services. The depletion or loss of these ecosystem services through the degradation of nature poses significant financial risks for their long-term business resiliency.

Human capital management

Effective management of human capital is critical to an engaged and productive workforce. Failure to manage related risks and opportunities can affect workforce and stakeholder relationships, potentially impacting shareholder value.

Social stakeholder engagement

To be sustainable over the long term, a company’s leadership needs to take into account the broader network of relationships in which it operates. This includes shareholders, suppliers, customers, and surrounding communities.

Governance

We believe there is strong positive correlation between high governance standards and superior shareholder returns. Effective corporate governance features transparency, accountability, oversight and respect for shareholders.

Strategy alignment with the long term

Long-term thinking leads to enduring business models. We believe executive compensation plans should be structured to create long-term alignment between shareholders and the management of the companies in which we are invested.

Intentionality

We are determined to act in the best interests of our clients by encouraging investee companies to focus on prudent allocation of capital and long-term value creation.

Materiality

We strive to understand how factors impacting sustainability are financially significant to individual companies over time, understanding that the regions, cultures and organisations in which we invest differ greatly.

Additionality

We focus on strategic issues that are most urgently in need of our involvement in order to deliver better long-term return to our clients. We believe that, as large investors, we have the ability to put our resources to work towards achieving the outcomes we seek on behalf of our clients.

Transparency

We seek to be clear about the investment stewardship work we do and take steps to be transparent to our stakeholders, as we expect the same of investee companies.