As a responsible investor, ILIM adopts an active ownership approach across its equity holdings, which aims to maximise the medium- to long-term value for our clients. ILIM uses the discretion afforded to it under a client’s Investment Management Agreement to exercise voting rights and to constructively engage with investee companies, encouraging better standards and management processes covering financially material environmental, social and governance (ESG) risks. Both of these processes serve the long-term interests of our clients.
The amended European Shareholder Rights Directive II (SRD II), which came into force in Ireland on 30 March 2020, aims to encourage long-term shareholder engagement. It also includes transparency obligations for European institutional investors – i.e. pension funds and insurers – as well as European asset managers (e.g. Irish Life Investment Managers), to the extent that investments in EU equity instruments are made. Irish Life Investment Managers (ILIM) is an asset manager who complies with its obligations as set out below.
ILIM’s Active Ownership programme focuses on core ESG themes, which can be categorised under two mega themes: decarbonisation and a trend to a more stakeholder centric business model. This Active Ownership programme is led by ILIM’s Responsible Investment Team and we have policies in place to govern our Voting and Engagement activity on behalf of clients.
In addition, we also provide our Institutional clients an annual disclosure which includes, but is not limited to; an overview of our approach to Shareholder Voting and Engagement, any key material risks associated with the investments, any conflicts of interest and our applicability of our securities lending policy on our engagements. Please refer to SRDII Annual Client Disclosure.
In general, ILIM aims to vote on shares of companies for which it has proxy-voting authority with some limited exceptions. Votes cast support shareholder proposals on risk mitigation and social, environmental and labour/human rights issues.
ILIM uses a proxy voting platform and proxy voting recommendations for all of the meetings at which we vote. We have appointed ISS – an expert in proxy voting – to provide advisory and proxy voting services. These services include voting recommendations, vote execution and reporting. This appointment is reviewed regularly. It is important to note that ILIM reserves the right at all times to vote on any matter, even if this is contrary to the recommendations of ISS.
ILIM uses a financial materiality driven approach to identify and focus on companies and issues with the potential to have the greatest long term impact on investment outcomes. ILIM has appointed Vigeo Eiris – an expert in ESG research and engagement activities – to provide advisory and engagement research services to support ILIM’s own internal resources to help identify ESG risks and support engagement activity with the companies in which we invest.
We publish a summary review of the voting and engagement activity we have undertaken on behalf of our clients annually. Please refer to Responsible Investing Annual Review 2020
We make available the details of our voting activity for clients.
In addition, we also provide our Institutional clients an annual disclosure which includes, but is not limited to; an overview of our approach to Shareholder Voting and Engagement, any key material risks associated with the investments, any conflicts of interest and our applicability of our securities lending policy on our engagements.
Irish Life Investment Managers (ILIM) is the appointed asset manager to Irish Life Group Limited. ILIM is committed to innovating and leading the market with best in class investment solutions designed to meet the specific investment needs of our clients. Call us at: +353-1-704 1200 or email [email protected]