Border to Coast updates voting policies for 2023

Border to Coast’s belief in active stewardship means making its voice heard on company votes is a key part of its engagement work.

As part of its ongoing evolution and strengthening of its approach to remain an effective long-term, responsible investor on behalf of its partner funds, it has updated its voting policy for 2023, with key changes made to its voting intentions with regards climate change and diversity.

Companies that are not making sufficient progress in mitigating climate risk are identified using the Transition Pathway Initiative (TPI) and the Climate Action 100+ (CA100+) Net Zero Benchmark.

Border to Coast will vote against the chair of the board where companies scored two or lower by the TPI, and where oil and gas companies scored three or lower.

For companies covered by CA100+ Net Zero Benchmark, Border to Coast will vote against the chair of the board if it fails any of the first four indicators: a clear ambition to reach net zero by 2050 or sooner, as well as short-, medium- and long-term emission reduction targets.

Where a bank materially fails the first four indicators of the TPI framework for banks, Border to Coast will vote against the chair of the sustainability committee.

Voting will be influenced on a case by case basis in line with the pool’s support of a just transition.

Border to Coast seeks to support the government-backed Davies report, and the Hampton-Alexander and Parker which set goals for UK companies regarding the representation of women and ethnic minorities on boards, executive teams and senior management.

It will vote against the chair of the nomination committee where boards are composed of fewer than 33% female directors in developed markets, have no female representation in emerging markets and Japan, and do not have at least one person from an ethnic minority background in FTSE 100 companies.