LLB Sustainability
Voting - Reporting for 2022
Agenda
Our motivation | 3 |
Our voting & engagement approach | 4 |
Our selection criteria | 5 |
Our voting process for LLB funds | 6 |
Our engagement process with LLB funds | 7 |
Our engagement process with mandates | 8 |
Entry into force | 9 |
Voting Reporting 2022 at entity level | 10 |
2 | LLB Sustainability - Voting - Reporting for 2022, LLB Asset Management, April 2023 |
Our motivation
- We are committed to an economically efficient and at the same time sustainable financial system and support the regional and supra-regional industry associations.
- Our aim is to promote best practices in the field of "active ownership".
- The UN-backed Principles for Responsible Investment (PRI) provide us with best practices and inputs for incorporating ESG factors into our investment and ownership decisions.
- As a signatory to the PRI, LLB Asset Management AG feels a long-standing relationship with this organisation.
- With "Voting & Engagement", we pursue the goal of bringing about positive changes in corporate decisions that determine the long-termrisk-return characteristics of future investments.
- ESG issues are important determinants of value generation and risk reduction.
Our fiduciary responsibility in the form of the six principles of the PRI initiative.
- We incorporate ESG issues into investment analysis and decision-making processes.
- We are active shareholders and consider ESG issues in our investment policies and practices.
- We encourage companies and entities in which we invest to make appropriate disclosure on ESG issues.
- We drive acceptance and implementation of the Principles in the investment industry.
- We work together to increase our effectiveness in implementing the Principles.
- We report on our activities and progress in implementing the Principles.
3 | LLB Sustainability - Voting - Reporting for 2022, LLB Asset Management, April 2023 |
Our Voting & Engagement Approach
Voting & Engagement Approach
Reconciliation & Engagement in LLB Asset Management
Influence with a clear goal
◆ Influencing through voting and engagement |
The special exercise of voting rights and other opportunities to exert influence generally arise
- in norm-based engagement and in ESG incidents;
- in thematic
Voting & Engagement on issues such as human rights, ...;
- in influencing on material ESG risks.
Process steps
The individual process steps are as follows:
- Voting & Engagement Selection process
- Voting & Engagement Planning with Target setting
- Research and exchange
exchange with others Information providers, esp. ISS
Reporting
The various active ownership tools are reported transparently in the corresponding annual reports:
- Letter to the Management / Board
- Management visits
- Voting, Proxy Voting and shareholder proposals
- Cooperation with other investors
requires a clear objective in order to fully leverage |
the effectiveness of the different tools. |
◆ Engagement as well as voting allow us to |
proactively work on relevant sustainability issues in |
advance of a possible ultimate exclusion from our |
portfolios. |
◆ On the path to better sustainability among |
companies worldwide, the exclusion of a holding |
can only be the ultimate tool. |
◆ We exchange views with other asset managers on |
voting and engagement issues that are also on our |
agenda. |
4 | LLB Sustainability - Voting - Reporting for 2022, LLB Asset Management, April 2023 |
Our selection criteria
Voting & Proxy Voting | ||||
- Inclusion of ISS SRI proxy voting information | ||||
- As a rule, voting with ISS SRI recommendation, | ||||
otherwise written documentation | ||||
Engagement&Voting | criteriaSelection | - Identification of controversial issues | ||
- Submission of a shareholder proposal | ||||
ESG data and evaluation | ||||
- ESG data basically represent the starting point for | ||||
influencing (voting & engagement) | ||||
- Orientation towards the MSCI ESG Reports and ISS | ||||
SRI Recommendations | ||||
- Many controversies and high ESG risks | ||||
support a voting & engagement activity | ||||
Extent of ownership | ||||
- The extent of influence depends on the market | ||||
capitalisation and the share of the market | ||||
capitalisation of the company. | ||||
- Engagement requires a larger participation quota | ||||
than voting. | ||||
Engagement selection criteria
- In voting and engagement, we see a great added value for stakeholder value and at the same time shareholder rights.
- Our focus is therefore particularly on the governance issue, as this can lead to a reconciliation between the company's performance through management decisions on the one hand and shareholder interests on the other - especially with regard to sustainability.
- Against this background, transparency is of great importance, and transparency at both ends: Both in our voting and engagement decisions and in corporate governance.
5 | LLB Sustainability - Voting - Reporting for 2022, LLB Asset Management, April 2023 |