Galloway: We are engaged owners on behalf of our funds. Through research and advocacy for strong corporate governance practices, direct engagements with company management teams and boards of directors, and proxy voting, we work to ensure that portfolio companies are taking the appropriate steps to address the risks that climate change poses to long-term investors.
We believe in the power of engagement. We have ongoing conversations with portfolio companies to share our expectations of them when it comes to addressing climate change risks on behalf of investors.
First, we expect company boards to demonstrate effective oversight of climate-related risks. That starts with a board that has the requisite skill, perspective, and independence to exercise appropriate climate risk oversight.
Second, we expect to see evidence that boards have robust strategies and mitigation measures in place to address climate risks.
And third, we expect boards and companies to explain their plans to remain resilient and successful in the face of changing regulatory and market conditions. This includes providing clear, comprehensive, and comparable climate risk disclosures, including any specific climate change transition targets and progress against those targets over time.
As with other material risks to long-term shareholder value, if a company does not demonstrate meaningful progress toward addressing risks associated with climate change, we may use proxy voting to support appropriately targeted shareholder proposals, or to vote against director nominees to demonstrate our concern.