Engagement
One of the pillars of a best-in-class active ownership approach is engagement with the management and boards of companies on ESG considerations. We believe that engagement influences corporate management teams to more effectively manage ESG risks and opportunities, which is essential for long-term outperformance.
Given our size and our practice of investing through third-party investment managers, we more often participate in collaborative engagement groups and initiatives. We believe that the collective influence of like-minded investors with substantial combined holdings will typically lead to better outcomes than we could achieve on our own.
We augment these efforts with the services of specialized engagement service providers. By adding these services to our multi-pronged engagement approach, we leverage the influence of a larger asset base and extend the reach of engagement to represent our ESG concerns to issuers globally.
The following charts summarize our recent engagement activities through our engagement service provider and collaborative initiatives including the Canadian Coalition for Good Governance, CDP, Climate Action 100+, Climate Engagement Canada and 30% Club.
Companies engaged by country/region 2024
Companies engaged by issue 2024
1,147
Companies engaged
52
Countries covered
UTAM works with EOS at Federated Hermes, a leading stewardship service provider whose engagement activities enable long-term institutional investors such as UTAM to be more active owners of the assets they own or manage, through dialogue with public companies on ESG issues. EOS takes a collaborative approach, seeking client input in setting priorities and providing opportunities to participate in select engagements and learn from their experienced engagement professionals.
In 2024, through EOS, UTAM engaged with 705 companies in our long-term portfolios on 3,284 environmental, social, governance, strategy, risk and communication issues and objectives. Of these, 2,128 were linked to one or more of the UN Sustainable Development Goals (SDGs). The SDGs were adopted in 2015 as a global call to end poverty, protect the planet and ensure that everyone enjoys peace and prosperity by 2030.
EOS priority themes for 2023:
Board effectiveness: In 2024, EOS focused on improving ethnic diversity to enhance board performance across function, composition and structure and to match recent progress towards gender diversity. Board composition should be aligned to the strategic needs of each company while reflecting the diversity of stakeholders it aspires to serve.
Climate change: EOS continued to press companies to create and implement greenhouse gas reduction strategies and targets aligned to the Paris Agreement. EOS evaluated the credibility of transition plans, including their reliance on technology, and sought governance oversight of related risks. Specific engagement focuses included mitigating high methane-emitting sectors, addressing physical climate risk, and supporting a just transition to net zero.
Human and labour rights: EOS engaged companies to acknowledge human rights impacts present within operations and supply chains and to demonstrate appropriate board- and executive-level governance. Indigenous and community rights, human rights in conflict zones, data privacy, and freedom of expression were areas of focus.
Human capital: EOS, in recognition of workforce pressures from artificial intelligence implementation and cost of living increases, intensified engagements on advancing workers and improving their skills, as well as closing pay gaps across ethnicities. Health and safety risks were extended to mitigate climate-related risks, such as heat stress.