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How we’ve updated our Engagement Blueprint for listed assets

We explain the changes made in the annual update of our Engagement Blueprint, which sets out our ambitions and approach to active ownership.

31/01/2024
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Authors

Hannah Shoesmith
Head of Engagement
Lucy Larner
Engagement Associate

Our Engagement Blueprint lays out our long-term expectations of companies across six thematic areas. Now in its third edition, the Blueprint aims to bring transparency to our investee companies and our clients around our expectations and approach to engaging on sustainability issues. 

  • The full Engagement Blueprint can be found here 

As in previous years, the Engagement Blueprint is built around six priority themes: climate change, natural capital and biodiversity, human rights, human capital management, diversity and inclusion, and corporate governance.  

This year, our updates to the Blueprint reflect the increasing interconnectedness between these themes and the emerging topics that have the potential to affect companies.  

Below, we highlight some of the updates made where we believe enhanced disclosure or embedding specific practices will better protect or enhance the value of our investments. 

Climate change  

  • We ask that companies work to enhance their climate-related disclosures by setting out the proportion of greenhouse gas emissions covered by targets and work towards obtaining independent third-party assurance  

  • We request that companies work with suppliers, peers and policymakers to design suitable adaptation strategies that consider wider impacts on workers. 

Natural capital and biodiversity  

  • To keep pace with evolving best practice and the Global Biodiversity Framework established at COP-15, we have included requests that companies conduct nature-loss scenario analysis and integrate the findings of this analysis into their business strategy. 

Human rights 

  • As human rights due diligence laws continue to take shape, we have made more detailed requests on companies to conduct supply chain human rights due diligence, including children’s rights. 

  • To reflect emerging best practice as it relates to responsible artificial intelligence and other emerging technologies.  

  • We ask companies to ensure their human rights policies encompass the protection of rights in products and services. 

Human capital management 

  • Building a strong culture is a key element to fostering innovation and productivity, and to this end we ask companies to disclose the key outcomes and results from employee engagement mechanisms and disclose a commitment or policy to address workplace mental health. 

Diversity and inclusion 

  • We believe that diversity across multiple dimensions brings a valuable range of perspectives, and when paired with an inclusive culture can lead to positive benefits. We have asked companies for greater diversity disclosure at the board level. We also ask companies to disclose approaches to ensure products and services do not risk perpetuating biases. 

Corporate governance 

  • We recognise that strong corporate governance, underpinned by high ethical standards and an open and accountable culture, is foundational to building the long-term sustainability of companies.   

The actions we ask of companies are not exhaustive. Our engagement strategy aims to prioritise the most material issues in the context of sector, region, and the companies themselves.  

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Authors

Hannah Shoesmith
Head of Engagement
Lucy Larner
Engagement Associate

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