Approfondimenti
Engage Autumn 2024
|
Engagement Report
|
• |
ottobre 25, 2024
|
ottobre 25, 2024
|
Engage Autumn 2024 |
In this edition:
Accounting for all costs
Our decade-long engagement on pay with a German multinational software company we hold in our global and international portfolios concluded satisfactorily with the company’s decision to include share-based compensation (SBC) in its earnings. In this piece, we look at the increasing prevalence of SBC in employee compensation and why excessive use of it can be problematic.
The importance of accuracy
The reporting of inaccurate data can pose a potentially financially material risk to credit rating companies, including litigation and reputational risks, as these companies play a key role in helping creditors make decisions about granting individuals loans. In this engagement, we met with one of the credit rating companies we hold to discuss accuracy in credit reporting.
Seeing the wood for the trees: EUDR 101
With potential fines for companies of up to 4% of total European Union (EU) turnover, the EU Deforestation Regulation (EUDR) has the potential to pose financially material risks to companies doing business in the EU. In order to understand the risk facing companies in our portfolios, we set out to assess the exposure of companies we own and engage directly with those we consider to be at potential risk. In our engagements, we focused our discussion on the visibility and transparency of companies’ supply chains today, as well as any planned changes to meet the new rules.
|
Head of ESG
International Equity Team
|