Standard office tools were not designed for stewardship. Stewardship is not a task or model. It’s a complex, evolving and often multiyear process. As organisations expand their stewardship efforts, they may need tools to better manage their engagement. This can help them save time on engagement tracking, monitoring and reporting – and give back more time for meaningful engagement itself.
In this case study, we exemplify how Esgaia helps UK-based asset manager Findlay Park Partners manage its enhanced stewardship approach and support robust reporting against the UK Stewardship Code.
Background
Findlay Park has a long history of stewardship, but its efforts have intensified in recent years. For instance, as part of its Net Zero Asset Manager’s commitment, it engages with all companies in which it invests which have not yet committed to science-based climate targets. It was also among the first cohort of signatories to the new UK Stewardship Code.
As a signatory to the code, investors should explain their stewardship strategy in practice, demonstrating how policies and processes translate into responsible investment stewardship. This includes communicating:
How your stewardship strategy is implemented, governed, resourced, and incentivised
What this looks like in practice in terms of e.g. investee monitoring, proxy voting, escalation, collaboration, and market influence
What the outcomes have been, for instance whether corporates have responded to engagement asks
As Findlay Park looked to further enhance its stewardship reporting against the code, it recognized the value of bespoke software to help its efforts. With Esgaia technology, it ensures best-in-class engagement data management and reporting capabilities. This helps the firm better communicate the activities and outcomes of its stewardship to clients and beneficiaries.
Client
Findlay Park is an independent investment partnership based in London. Its purpose is to generate compelling compound returns for its investors, measured over decades. With a 25-year track record, Findlay Park currently has over 10bn EUR in AuM.
Challenge
The Code is clear in that effective stewardship is dependent on individual circumstances. As such, it does not prescribe a one-size-fits-all approach but instead expects organisations to exercise responsible stewardship in a way that fits their size, type, business model and strategy. Resourcing is still a key aspect of the code, which requires of signatories to appropriately resource stewardship activities, including the investment in people, processes, research and systems.
As we frequently point out, however, many investors tend to forget about the latter, at least in regard to engagement data management. The challenge with legacy approaches - excel being the incumbent - is that they tend to not do well with increased complexity: as practices evolve, it becomes increasingly difficult to ensure record and data quality, adequate coordination and task management.
Solution
By choosing Esgaia, Findlay Park has opted for a purpose-built solution. A software that helps investors improve engagement data management around activity and engagement recording, progress monitoring, and stakeholder reporting. More specifically, of relevance to the code, Findlay Park uses Esgaia to:
Structure engagement records with clear objectives
Track interactions and the outcomes of engagements
Capture efforts in relevant industry initiatives
Analyze and export data for reporting purposes,
Monitor the alignment of its engagement with Principal Adverse Impacts and the UN Sustainable Development Goals
Platform captions, demo account
This case study supports our assertion that engagement tracking matters. In fact, it matters so much that without it, your engagement management and disclosures may suffer. Instead, using dedicated software, like Findlay Park, you can save time from inefficient administration to focus more on what really matters, tangible stewardship action!
Find out more about Findlay Park’s stewardship strategy here.
Rose Beale, Responsible Investment Lead, Findlay Park, comments:
- “We found Esgaia as part of our efforts to help increase the impact of our engagement. The platform was built by practitioners who really understand how effective engagement works, and the barriers to it. This was real differentiator for us. Esgaia has eliminated a lot of the frustrations, and given us more time to focus on engagement itself. Especially with Stewardship Code deadlines approaching, and PRI close behind it, the time it saves on reporting is also a highlight!”
If you want additional insights into how Esgaia can support you in meeting UK Stewardship Code requirements, please read this blog.
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