Engage By deepening the dialogue on ESG and stewardship, we aim to unlock value and enhance long-term investment returns. OVERVIEW PARTNER INVEST ENGAGE Engaging to advance the cycle of sustainability Sustainable investing does not end with an investment decision. Ongoing engagement helps us assess ESG risks and opportunities and allows us to influence corporate behavior in ways that can unlock value. Explore how we approach: RISK AND OPPORTUNITY ASSESSMENT OUR APPROACH TO ENGAGEMENT VALUE ENHANCEMENT RISK AND OPPORTUNITY ASSESSMENT Material ESG issues are strategic business issues that can affect financial performance Understanding ESG issues broadly, as well as those that are material to specific industries or companies, helps us provide a holistic perspective, promote leadership on ESG best practices, and engage more effectively on our clients’ behalf. Environmental Issues like water efficiency feed directly into production costs, so a company with better environmental practices may merit a higher valuation. Carbon emissions Climate change adaptation Water management Hazardous waste management Social A company’s relationship with its employees, vendors, and the broader community can affect its reputation and competitiveness. Corporate culture Cybersecurity Supply chain management Governance Corporate governance practices attract scrutiny from investors around the world and can affect everything from share price to earnings potential. Executive compensation Board composition Succession planning For illustrative purposes only. Our approach to engagement The goal of our stewardship activities — engaging with companies and voting proxies on our clients’ behalf — is to support decisions that can potentially maximize the long-term value of securities we hold. Learn more about Wellington’s Engagement Policy CORPORATE ENGAGEMENT Global proxy voting disclosure Wellington’s central ESG Research team makes voting recommendations to portfolio managers, which are often informed by ongoing engagement dialogue with companies, consistent with our role as active owners and fiduciaries for our clients. LEARN MORE Global proxy policy and procedures We vote proxies in a manner that we believe should maximize the economic value of our clients’ holdings over the long term. LEARN MORE Global proxy voting guidelines We evaluate each proposal on its merits and vote according to our own guidelines — rather than automatically with management or per recommendations of third-party proxy providers. LEARN MORE ESG integration philosophy We engage directly with company managements to identify and understand ESG risks and to positively influence corporate behavior. LEARN MORE VALUE ENHANCEMENT By engaging with companies to better understand and advise them, we believe we can unlock long-term value for our clients. Active ownership Our sustainable investment portfolio teams only invest in companies that meet their standards. Companies typically care deeply about our opinions, as we can be the incremental buyers or sellers of their securities. Simply put, we don’t have to own what we don’t like. Triangulating research Equity. Credit. ESG. These teams often meet with company managements as one group. Having three types of research specialists inquire about interrelated issues can be a powerful catalyst for enhancing transparency, uncovering insights, and promoting action. Size and scale Our access to management teams and boards of directors gives us a voice to influence positive outcomes on ESG issues on our clients’ behalf. US$1 trillion in assets under management 2,000 clients worldwide 10,000 company meetings a year As of June 2019 In practice Helping one company boost competitiveness through better ESG practices When a company takes steps to improve its ESG practices, it is a good sign. We work with management teams on constructive incremental solutions that we believe can add value over time. READ CASE STUDY Gain insight Read More 2020 ESG and Sustainability Outlook Read More ESG Research Update — Update on key sustainability initiatives (Q2 2021) Read More Building climate resilience within a strategic asset allocation framework Read More Has climate transition risk been priced into equities? Read More Engagement: Unlocking value, enhancing impact Read More Physical Risks of Climate Change (P-ROCC) Connect with us Ask a question or request a meeting CONTACT US INSIGHTS Market insights Blog CAPABILITIES Equity Fixed income Multi-asset Alternatives Multi-manager solutions Liability-driven investing Sustainable investing Emerging markets OUR CLIENTS Central banks and sovereign institutions Consultants Public defined benefit plans Corporate defined benefit plans Defined contribution plans Endowments, foundations, and nonprofits Family offices Financial advisors Insurers Intermediaries CAREERS Job openings Our people Our business networks Campus programs Information technology ABOUT US Our culture Meet the managers Facts and figures Diversity, equity, and inclusion Community engagement Wellington news CONTACT US Office locations Request information Press inquiries LEGAL Investment risks Terms of use Privacy policy Cookies Proxy vote SFDR Important disclosure FOLLOW US Sustainable Investing © Copyright 2021 Wellington Management Company LLP. 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