Engaging for change
The investor voice is a powerful means to influence and direct the ways in which companies are run. Taking an active approach to our share ownership of companies is part of the Greenbank service and complements our investment analysis. It is a vital expression of our role as stewards of our clients’ assets to advocate for lasting change with the companies in which we invest.
Engagement forms a key part of Greenbank’s approach to responsible investment in the following ways:
— as a means of addressing direct concerns about a specific company issue or area of performance
— as a means of encouraging best practice, giving internal momentum for positive change within companies
— as a means of furthering a 'best of sector' investment strategy (for example, in the extractives and pharmaceuticals sectors) by encouraging constituent companies towards more positive behaviour
— in engaging with a company, Greenbank will favour the methods shown below.
Our core principles
Our engagement is guided by the following principles:
— Greenbank will seek open and constructive dialogue in a spirit of longer-term partnership
— engagement will be made on the basis of corroborated evidence or research which is of a rigorous and independent nature.
Measurement and reporting
Any new insights from our engagement activities are fed directly back into the investment process. We also provide our clients with a detailed summary of the engagement activity that is relevant for their portfolio on a regular basis and we are always seeking opportunities to represent their views and create positive change on their behalf.
The power of engagement
Greenbank has had over 600 individual engagement interactions with companies since 1998 and has taken part in over 30 collaborative engagements through the PRI alone since 2009. The following timeline shows our work in one of our core engagement areas.