ESG

We believe that climate change has the potential to affect virtually every company we invest in, whether through physical climate risk or transition risk as we shift to a lower-carbon economy. Conversely, we believe that the best-placed companies will thrive as a result of this transition. We monitor the carbon intensity of our portfolios and engage with the major contributors to better understand the climate strategies and the actions they are taking to address climate-related risks.

We believe that social considerations are increasingly important for modern companies. These include developing strong human capital management practices and nurturing diverse, equitable and inclusive workplaces. It also includes creating ethical supply chains free from human rights violations such as modern slavery. We also believe companies have an obligation to use their power responsibly, whether through their own corporate activity or their influence on policymakers through lobbying.

We believe that strong corporate governance drives shareholder value while protecting shareholders’ interests. Informed boards lay the foundation for high-performing management teams to create positive corporate culture, effectively define strategy and judiciously allocate capital to its highest use. In our proxy voting policy and processes, we urge companies to adopt corporate governance structures most aligned with the creation of shareholder value.