Engagement in action

Explore the three ways we are developing an understanding of Environmental, Social and Governance (ESG) challenges for companies to drive positive change.

Sustainable investing 11 Apr 2022 10 min read

Case studies

  1. ENI improves transparency on climate change
  2. Cadence Design Systems commitment to equal pay
  3. ABB to include ESG targets in remuneration
 

Environmental pillar

ENI

Case study result - Improved transparency on climate change plans and objectives

ESG topics addressed

  • Strategy and Business Model
  • Capital Management
  • Transparency and Disclosure
  • Environmental Management and Climate Change

Sector

Energy, Integrated Oil & Gas

Issue

  • We have been engaging with the Company through the Climate Action 100+ collaborative investor group.
  • Dialogue with management focused on the Company’s decarbonization strategy, its capital expenditure plans, and greenhouse gas emissions reduction targets.
 

Social Pillar

Cadence Design Systems, Inc.

Case study result - Commitment on reviewing ethnicity and equal pay

ESG topics addressed

  • Human Capital Management
  • Labour Standards
  • Diversity

Sector

Information Technology

Issue

  • The Company has indicated that human capital and diversity are at the top of their ESG agenda.
  • One quarter of the Board comprises female directors, and the company provides some disclosure on gender diversity.
  • However, the Company does not provide any disclosure on their approach to ethnic diversity. This is increasingly at odds with moves towards such disclosure among US companies.
 

Governance Pillar

ABB

Case study result - ESG targets included in remuneration

ESG topics addressed

  • Corporate Governance
  • Remuneration
  • Environmental Management and Climate Change

Sector

Industrials

Issue

  • We engaged with the Company on the topic of executive remuneration to address the lack of ambitious ESG targets in the compensation framework.
  • Given the significant opportunities that the Company enjoys in the transition to a low-carbon economy, we saw ESG compensation targets as a potential key driver of company value.

Information contained herein is for informational purposes only and does not constitute investment advice or a recommendation to invest in any strategy or securities nor does it take into account the particular investment objectives, financial situations, or needs of any individual prospective investor. Investors should seek professional investment and tax advice.

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