Engage

By deepening the dialogue on ESG and stewardship, we aim to unlock value and enhance long-term investment returns.

Engaging to advance the cycle of sustainability

Sustainable investing does not end with an investment decision. Ongoing engagement helps us assess ESG risks and opportunities and allows us to influence corporate behavior in ways that can unlock value. Explore how we approach:

Risk and opportunity Assessment

Material ESG issues are strategic business issues that can affect financial performance

Understanding ESG issues broadly, as well as those that are material to specific industries or companies, helps us provide a holistic perspective, promote leadership on ESG best practices, and engage more effectively on our clients’ behalf.

Environmental

Issues like water efficiency feed directly into production costs, so a company with better environmental practices may merit a higher valuation.

  • Carbon emissions
  • Climate change adaptation
  • Water management
  • Hazardous waste management

Social

A company’s relationship with its employees, vendors, and the broader community can affect its reputation and competitiveness.

  • Corporate culture
  • Cybersecurity
  • Supply chain management

Governance

Corporate governance practices attract scrutiny from investors around the world and can affect everything from share price to earnings potential.

  • Executive compensation
  • Board composition
  • Succession planning

For illustrative purposes only.

Corporate engagement

The goal of our stewardship activities — engaging with companies and voting proxies on our clients’ behalf — is to support decisions that can potentially maximize the long-term value of securities we hold.

Learn more about Wellington’s Engagement Policy

Our approach to proxy voting

2019 Significant global proxy voting report

Wellington’s central ESG Research team makes voting recommendations to portfolio managers, which are often informed by ongoing engagement dialogue with companies, consistent with our role as active owners and fiduciaries for our clients.

Global proxy policy and procedures

We vote proxies in a manner that we believe should maximize the economic value of our clients’ holdings over the long term.

Global proxy voting guidelines

We evaluate each proposal on its merits and vote according to our own guidelines — rather than automatically with management or per recommendations of third-party proxy providers.

ESG integration philosophy

We engage directly with company managements to identify and understand ESG risks and to positively influence corporate behavior.

Value Enhancement

By engaging with companies to better understand and advise them, we believe we can unlock long-term value for our clients.

Active ownership icon

Active ownership

Our sustainable investment portfolio teams only invest in companies that meet their standards. Companies typically care deeply about our opinions, as we can be the incremental buyers or sellers of their securities. Simply put, we don’t have to own what we don’t like.

Triangulating research icon

Triangulating research

Equity. Credit. ESG. These teams often meet with company managements as one group. Having three types of research specialists inquire about interrelated issues can be a powerful catalyst for enhancing transparency, uncovering insights, and promoting action.

Size and scale

Our access to management teams and boards of directors gives us a voice to influence positive outcomes on ESG issues on our clients’ behalf.

US$1 trillion

in assets under management

2,000

clients worldwide

10,000

company meetings a year

As of June 2019

In practice

Helping one company boost competitiveness through better ESG practices

When a company takes steps to improve its ESG practices, it is a good sign. We work with management teams on constructive incremental solutions that we believe can add value over time.

Gain insight

Read More

2020 ESG and Sustainability Outlook

Read More

Global ESG Research Update — COVID-19 puts a spotlight on stakeholder capitalism

Read More

Pricing climate risk: A multidisciplinary approach

Read More

Gradually, then suddenly: Why climate change may affect prices sooner than you think

Read More

Engagement may create investment opportunities in Japan

Read More

Physical Risks of Climate Change
(P-ROCC)

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