Engagement

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Responsible engagement overlay (reo®)

F&C uses its influence as one of Europe's largest shareholders to promote the adoption of better environmental, social and governance practices, where this can benefit shareholder value. In addition to applying this approach, known as the Responsible Engagement Overlay (reo®), to the funds it manages in-house, F&C applies reo® to a further £7 billion of funds managed by other investment institutions.

F&C’s overall philosophy is embodied in its statement of ‘Responsible Ownership – Policy and Principles for Corporate Governance’, which is rooted in sound risk management, independence, appropriate incentives and transparency. Through its 15-strong Governance and Sustainable Investment Team, based in the UK and US, F&C has unrivalled resources for researching and engaging companies. Underlying this commitment are three principles that F&C follows:

Relevant links
Latest reo report Principles for Responsible Investment ASP report EITI statement

To be informed and thorough in its due diligence – so that engagement activity reflects companies’ individual circumstances and that dialogue makes a difference
To be persuasive and pragmatic in shareholder engagement – so that engagement achieves change that enhances the bottom line, rather than imposing prescriptive demands on companies
To be transparent and responsive to its clients – so that F&C represents their concerns fairly.

Environmental
Click here to learn about the following environmental engagement programmes: Biodiversity; Climate Change; Environmental Management

Social
Click here to learn about the following social engagement programmes: HIV/AIDS and Business; Human Rights; Labour Standards.

Governance
Click here to learn about governance engagement programmes: Bribery & Corruption; Corporate Governance; Transparency & Performance.