We want the companies we invest in to behave responsibly. We believe that, in the long run, this is not only good for society but is also the best way to build long-term value for shareholders. Often, we work collaboratively with the boards of these companies towards mutually agreed goals but on other occasions we flex our muscles and demand change by voting against boards, or even excluding companies from some funds, depriving them of capital.
We monitor the companies’ performance on environmental, social and governance issues. And we aim to ensure that, for example, businesses limit their impact on the environment, are properly managed and that executive pay is appropriate. Below we’ve listed five companies where we have sought change in recent months. Some, like Barclays, have worked with us collaboratively to develop impressive future plans, while some others have proved more challenging.