All Engagement guide articles – Page 4
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Engagement guideHow investors can promote responsible cobalt sourcing practices
Lithium-ion batteries power products at the cutting edge of technology, from smartphones to laptops and electric cars.
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Engagement guideRisks in the upstream cobalt supply chain
ASM: Carried out informally by individuals or communities using manual labour and hand tools. 20% of the cobalt sourced from the DRC is mined this way. Large-scale mining (LSM): Industrial mining that represents 80% of the cobalt sourced from the DRC. LSM and ASM supplies ...
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Engagement guide
How to respond to and remedy human rights violations in the cobalt supply chain
Under relevant international standards (e.g. UN Guiding Principles on Human Rights), companies have the responsibility to mitigate or remediate any negative impact caused – directly or indirectly by their activities. Ceasing relationships with problematic suppliers or ceasing to source from the DRC or from ASM does not constitute a ...
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Engagement guide
Tackling human rights risk in the cobalt supply chain through industry initiatives
Joining and actively participating in industry initiatives allows companies to have a dialogue with peers, benefit from knowledge sharing platforms and combine efforts to tackle common challenges.
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Engagement guide
Human rights risk assessment and due diligence in the cobalt supply chain
The OECD Guidance for Multinational Companies sets out different due diligence requirements that stem from the different responsibilities companies have according to their location in the supply chain.
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Engagement guideHow do companies address human rights risk in the cobalt supply chain?
Consumer electronics Apple has mapped its supply chain down to the mines and formed a coalition of industry players that led to the creation of a risk readiness assessment tool. One hundred percent of smelters in the chain receive third-party audits and Apple works ...
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Engagement guide
ESG engagement for fixed income investors: managing risks, enhancing returns
Issuer engagement on ESG factors is becoming increasingly commonplace. Investors are starting to formalise their engagement as an integral part of their approaches to responsible investment.
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Engagement guide
Timing fixed income engagement
Successful bondholder engagement with issuers is largely dependent on whether the deal is public or private, and whether the investor engages pre- or post-issuance.
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Engagement guide
Embedding engagement in the fixed income investment process
Engagement by fixed income investors should not be seen as a standalone activity but as an integral part of a responsible investment approach . as both a source of information for investment research, and a way to directly influence the issuer’s management of ESG risks and opportunities. Thus, the research ...
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Engagement guide
Factors determining the effectiveness of engagement in fixed income
Fixed income investors’ ability to influence issuers’ senior management depends on a number of factors, many of which will appear obvious but are nonetheless important to bear in mind when developing an engagement strategy.
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Engagement guide
Overcoming common hurdles in fixed income engagement
Despite the motivations for engagement laid out earlier in this report, there remains significant inertia among fixed income investors to engage.
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Engagement guide
Collaborative engagement in fixed income investing
Principle 5 of the six Principles encourages collaboration by investors to enhance the effectiveness of their responsible investment approach.
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Engagement guide
Defining objectives and measuring the effectiveness of engagement in fixed income
Once the list of target companies has been defined, investors need to set objectives and track the outcomes of their engagement practices to ensure their effectiveness.
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Engagement guide
Tips for effective bondholder engagement
In this section, we present a summary of practical tips for effective bondholder engagement.
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Engagement guideEngagement trends among fixed income investors
This section considers ESG engagement trends among fixed income investors before giving guidance on the practical aspects of bondholder engagement.
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Engagement guide
Prioritising fixed income engagement activities
Investors with exposure to hundreds or thousands of different issuers may only be able to meaningfully and proactively engage a small proportion of those issuers.
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Engagement guideESG engagement for fixed income investors
Principle 2 of the six Principles encourages investors to be active stewards of their investments and incorporate ESG factors into their ownership policies and practices across different asset classes.
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Engagement guideWhy engage as a fixed income investor?
Investors typically engage with companies and other types of issuers to identify, monitor and manage risks to their investment returns. In signing up to the PRI, investors affirm that ESG factors can have a material impact on those returns.
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Engagement guide
Why engage on fracking?
With existing fracking operations globally and a potential surge in regions such as China, fracking remains important to investors that hold global oil and gas companies with market exposure.
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Engagement guide
Recommendations for future engagement on water risks
PRI research has shown that companies are improving their disclosure of managing water risks in agricultural supply chains, but there is still room for improvement, as summarised by the following recommendations.
