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 University Network for Investor Engagement, the Canadian Coalition for Good Governance, CDP, Climate Action 100+, Climate Engagement Canada, and the 30% Club.
Companies engaged by country/region 2025
Companies engaged by issue 2025
1,147
Companies engaged
52
Countries covered
972
Companies engaged
47
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 2024:
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.
UTAM has contracted and works closely with EOS at Federated Hermes Limited, a stewardship service provider, on engagement activities. As a member of EOS’s client advisory council, UTAM helps steer engagement priorities and work plans, and we stay informed on strategies and progress through ongoing discussions with EOS subject-matter experts.
Since UTAM began working with EOS in 2019, engagement activities have prioritized four broad themes: Climate Change, Human and Labour Rights, Human Capital and Board Effectiveness. While these themes provide a consistent framework for long-term engagement, we value the fact that EOS is constantly responding to evolving risks and opportunities: the Climate Change category, for example, has continued to advance subcategories that include The Energy Transition and Extreme Weather Events. Alongside these core themes, EOS also addresses emerging or more pressing areas of concern, which in recent years have included biodiversity; the impacts of fast fashion; plastics and the circular economy; AI and its associated risks; corporate tax practices; and ethical conduct.
EOS priority themes:
Board Effectiveness: EOS continues to seek improvements in board function, composition and structure. A corporate board should continuously assess the prevailing company culture to ensure
alignment with purpose, strategy, and returns on capital employed.
The Energy Transition and Extreme Weather: EOS continues to engage companies on their transition plans to work towards the long-term goals of the Paris Agreement while addressing the realities of increasing energy demand and extreme weather events. This includes advocating for aligned capital allocation, revenue growth, risk mitigation measures, target-setting, and disclosure.
Human and Labour Rights: EOS continues to focus on the protection of human rights in high-risk regions, with an emphasis on supply chain rights where there is an elevated risk of forced labour, unsafe working conditions and value chain financial vulnerabilities. A related concern is safeguarding human rights in the virtual world. This includes ensuring data privacy rights and freedom of expression, as well as protection from unfair bias, which the use of AI may amplify.
Human Capital: EOS’s engagement efforts remain focused on upskilling and reskilling workers, and on encouraging merit-based hiring practices that avoid discrimination. EOS also supports improved health and safety measures – including managing heat stress, psychological safety and mental wellbeing, as well as halting sexual harassment.