Ethos, CPEG Start the new commitment campaign with the largest asset managers | News

The Ethos Foundation together with its International EEP (Ethos Engagement Pool), which is supported by pension funds and starts assets worth around EUR 300 billion (€ 313 billion), starts a new campaign to employ the largest asset management managers, the votes of which are often not in line with the requirements of wealth representatives.

At the beginning of this year's season for the annual general meeting (AGM), Ethos starts in cooperation with the pension fund for the Swiss canton of Geneva (CPEG) and MBS Capital Advice, a company that advises pension funds on investment strategies.

“We will deal with the largest international asset management managers – Backrock, State Street and Vanguard. We are also aimed at UBS and Pictet Asset Manager in Switzerland, ”said Vincent Kaufmann, Chief Executive Officer of the Ethos Foundation, IPE.

The campaign is a first step to cause asset managers to take the ESG criteria into account on AGMs and to inform asset managers that pension funds want more consistency between the coordination and what is asked by engagement activities.

“That will [also] Pension fund [better] Inform about how your asset managers may take your interest into account or not. Some pension funds could investigate to what extent the activities for the management of assets of asset managers are taken seriously in accordance with the values ​​of the pension funds, which is taken into account in the tender or again tendency, ”said Kaufmann.

Ethos, CPEG and MBS capital advice will begin with the seven largest asset managers because they manage the largest proportion of assets for pension funds, said Ethos.

The scope of the engagement campaign could be expanded in the future, said Kaufmann.

The Ethos sends a letter to asset managers to communicate that their customers are increasingly sensitive to the vote.

“So far we have identified 20 general meetings, but the number could increase how things develop, depending on which resolutions of the shareholders are a vote or not,” added the CEO.

The pension funds this year will use both direct commitment and commitment by the new Ethos and CPGE campaign to put pressure on asset managers.

CPEG, which actively helps with the campaign efforts, insisted on the support of the EEPO International, since it is a large amount of assets in order to have more influence on asset managers.

“The exercise of voting rights is an important instrument to express the expectations of the shareholders and companies are demanding to be responsible for important sustainability problems,” said Grégoire Haenni, head of the investment department of CPEG.

The misalignment of voting decisions of asset managers with the priorities of the international EEP members in the shareholder dialogue weakens the effects that investors can have together on managers, and according to Ethos undermines the credibility of engagement activities.

“Climate change and the climate councilors of companies remain a very important topic,” said Kaufmann, adding that social and governance problems will also be on the agenda.

For example, Ethos wanted to ask BP to re -arrange his climate strategy after the company's CEO, Murray Aschtin Clos, had reset a company to concentrate on the long -term shareholder value, which means that investments in oil and gas would increase and move away from its green investment plan.

BP will not bring his new climate strategy to a vote, even though it has resigned from its green investment plan.

“We will therefore mark the re -election of the chair as a potential object to challenge,” said Kaufmann.

The latest digital edition of the IPE magazine is now available