Becoming an active investor
Investors are engaged in shareholder dialogue when they communicate their concerns, discuss with senior management or the board of directors and follow up on possible improvements to be made in the risk management and operations of the company.
We carry out shareholder dialogues with companies, on behalf of our clients, concerning environmental, social and governance (ESG) issues.
The way a company incorporates ESG issues into its management can influence its stock value. By using our shareholder dialogue services, our customers benefit from an additional approach of risk and opportunity assessment, which helps safeguard the interests of investors and their beneficiaries.
Dialogues based on an analysis of ESG issues and practices
The processes that underpin our engagements are rigorous. In order to establish a list of companies with whom we aim to engage in a constructive dialogue, we conduct an analysis of ownership by the institutional investors we represent.
The selection process, carried out annually, generates the Æquo List. We then develop a dialogue plan based on ESG issues that can have a significant material impact on the future value of these companies.
We spark constructive debate in a diligent and professional manner, respecting the company’s business model and taking into account the challenges of the industry.
Meetings are held with specialized departments, senior management and the boards of the selected companies. The results of these dialogues are systematically compiled in company-specific activity reports intended for Æquo’s partners. As a last resource Æquo may recommend filing or supporting a shareholder proposal.
Pooled efforts
We also offer a pooled service of dialogues, in other words, dialogues destined to several investors. This approach allows us to coordinate the opinions of individual investors and deliver them to a company, increasing the relative impact of the dialogue process.
Therefore, by using Æquo’s services, you can add your voice to that of other investors in order to maximize the benefits of your dialogue.
Pooling forces represents a key advantage in our approach, as a dialogue is more effective when it is collaborative and coordinated.