- Stewardship Practice Leader
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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.
Building climate resilience: Toward a practical corporate frameworkContinue reading
The role of ESG in fintechContinue reading
Picture this: Our 2023 economic forecast in five chartsContinue reading
2023 Insurance Outlook: Resolve to solve with a restocked toolkitContinue reading
Equity investing with a thematic lens: Three game changers for 2023Continue reading
Building climate resilience: Toward a practical corporate framework
The need for systemic climate change resilience is becoming clear. We present a practical framework to help companies enhance resilience in their own operations.
The role of ESG in fintech
Global Industry Analyst Matt Ross and Portfolio Manager Matt Lipton explore the role of ESG in fintech in this clip from their WellSaid podcast episode.
Picture this: Our 2023 economic forecast in five charts
We explain the shifts the market is undergoing, analyze the implications for different asset classes, and identify potential risks and opportunities in a series of visuals.
2023 Insurance Outlook: Resolve to solve with a restocked toolkit
Multi-Asset Strategist Tim Antonelli and Insurance Strategist Max Davies share four actionable ideas designed to help insurers successfully navigate 2023.
Climate mapping in action: Investment case studies
We describe our Climate Exposure Risk Application (CERA), which can help our investment teams visualize and quantify physical climate risks.
Human capital management for private companies
We discuss why effective people management is critical for private companies and outline four strategic focus areas that can help companies navigate evolving employee needs, regulatory changes, and investor expectations.
Harnessing the power of engagement in stewardship investing
Equity Portfolio Manager Yolanda Courtines explores why company engagement is a key component of successful stewardship investing.
Equity investing with a thematic lens: Three game changers for 2023
Head of Investment Research Mary Pryshlak and Equity Portfolio Manager Tim Manning highlight their strongest convictions across global equity markets heading into 2023.