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The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only.
Wellington’s long-standing commitment to deep fundamental research and meaningful engagement with investee companies continues to drive positive engagement outcomes that we believe support and enhance long-term investment value for our clients. We are proud of progress we made in 2021 advancing our stewardship priorities, and we have seen many positive outcomes spanning a range of environmental, social, and governance (ESG) issues. We look forward to continued momentum on ESG and to expanding our influence via active ownership in 2022.
Climate action at an energy company
As part of our commitment to the Net Zero Asset Managers initiative and our belief that carbon considerations represent a meaningful transition risk, we continue to engage with companies, particularly in carbon-intensive sectors, to understand how they plan to set science-based targets and reduce greenhouse gas (GHG) emissions. We engaged with an energy company to assess its long-term carbon-emissions reduction goals and progress on setting a meaningful target. In October, the company announced it would target net-zero emission by 2050 and cut operational GHG emissions intensity by 30% by 2030.
Executive compensation at a digital payments company
Aligning executive remuneration with company performance to ensure long-term alignment with shareholder interests has long been an ESG area of focus. Over the past two years, the COVID-19 pandemic has raised awareness and heightened reputational risk for companies that flout or disregard these concerns. We engaged with a digital payments company to better understand the rationale behind a proposal to issue executive cash bonuses based on cost-cutting initiatives and growth metrics in just one business segment. We encouraged the company to implement a more holistic compensation plan that emphasizes overall growth. The company decided to revert to its pre-pandemic compensation structure, including the metrics as we had suggested.
DEI transparency at an energy company
We targeted diversity, equity, and inclusion (DEI) in 2021 as a key stewardship priority for companies to disclose the racial and ethnic composition of their board. We wrote to all S&P 500 companies, communicating our expectations and explaining how this issue would align with our voting guidelines. During 2021, a US-based oil and gas exploration and production company responded positively through further engagement, detailing its plan to expand these disclosures. The company has promised to include the racial and ethnic composition of its board starting with its proxy statement at the 2022 annual general meeting.
Shareholder activism in Japan: Integrating ESG within the investment processContinue reading
When extreme weather becomes the norm: what’s next for climate investors?Continue reading
WellSaid: The economic significance of biodiversityContinue reading
Activism – History and evolution in JapanContinue reading
Shareholder activism in Japan: Integrating ESG within the investment process
In the final article within our series on shareholder activism in Japan, ESG Analyst Soo Ho Jung shares how the Japan equity team integrates ESG to help realize value for investors.
When extreme weather becomes the norm: what’s next for climate investors?
Climate investors can play a crucial role in accelerating mitigation and adaptation solutions. But finding investable opportunities requires a deep understanding of the climate investing landscape.
WellSaid: The economic significance of biodiversity
In this short clip from his WellSaid podcast interview, Dr. Zach Zobel of Woodwell Climate Research Center discusses the economic importance of coral reefs — lynchpins of marine biodiversity and vital to fishing, tourism, and other industries.
2022 Climate Report
Is your asset allocation ready for the realities of climate change?
Our Investment Strategy Team shares key findings from the research behind their climate-aware strategic asset allocation (SAA) approach, including challenges and trade-offs that asset owners should understand.
Activism – History and evolution in Japan
Investment Specialist Toshiki Izumi examines the history of shareholder activism in Japan, with particular emphasis on the differences between current and historical attitudes toward activism.
Designing a climate-aware strategic asset allocation
Members of our Investment Strategy Team explain how they incorporate climate metrics into their asset allocation optimization process. They also discuss implementation — the choice of specific climate-aware building blocks and strategies to express the desired asset allocation.