Sparinvest opens its engagement playbook following historical collaboration

Under this headline, the news site for asset managers AMWatch writes that Sparinvest has now participated in its largest collaborative engagement.

As signatory of Climate Action 100+, Sparinvest’s initiative aiming to influence the world's largest corporate greenhouse gas emitters, Sparinvest’s credit team participated in its first larger group engagement in the beginning of May 2019.

The case revolved around a U.S.-based utility company. The company is the biggest carbon emitter in Sparinvest’s credit portfolio, analyst Antonia Draghici notes. She was Sparinvest's representative in an investor teleconference with five senior representatives from the company’s board of directors and management alongside three other asset managers and asset owners.

Because each of the participants invests in various asset classes and have varying investment time horizons, their individual objectives might vary, and it thus takes time to make sure goals are aligned beforehand:

"We have discussed our priorities and the hopeful outcome with the other investors, and we were pleased that the company's CEO participated in the call, as it sends a strong signal to us as investors," she says, adding:

"Sparinvest supports the goals of the Climate Action 100+, and the direct engagement is closely aligned with our responsible investing approach of active ownership and with the objectives of our own thematic carbon engagement."

The initiative is part of Sparinvest’s engagement in fixed income, which was described in depth in a paper written by Antonia Draghici and senior portfolio manager Thomas Bjørn Jensen from Sparinvest’s Fixed Income team. 

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