With 25 years of experience advising clients on responsible investment, we know how our screening and active ownership services can help investors integrate environmental, social and governance factors into their investment decision-making processes, thereby protecting investment returns. GES combines an in-depth research capacity with a rigorous approach to engagement and voting. We have solutions that fit investors whether they are taking the first steps within ESG integration or are looking to advance their active ownership.
GES recognises that responsible investing can mean many things and vary from client to client. GES takes a very inclusive approach to the basis of engagement and is open to engaging not only on the basis of GES’ own proprietary research but also client research as well as other external research.
Norms-based news monitoring
GES Alert is a news monitoring service which offers investors early notifications of companies potentially in breach of the UN Global Compact principles and relevant international standards on environmental, social and governance (ESG) issues.
GES Global Ethical Standard is a systematic screening of companies used by investors to ensure compliance with international norms on environmental, social and governance (ESG) issues, as well as adherence to the PRI (Principles for Responsible Investments). The UN Global Compact is used as the wider framework (see table below), interpreting international conventions and guidelines to companies. The analysis model is based on the principle that companies have a responsibility to comply with international norms even though they are not legally bound to.
The GES Controversial is a compliance screening of investment universes or portfolios. It enables investors to avoid business activities that can be regarded as controversial on the basis of their fundamental values and/or investment policy. GES Controversial measure how large part the controversial business activity is in relation to the turnover of the company. The analysis is made on the basis of a systematic screening of the companies.
The GES Business Conduct Engagement is an incident driven engagement service that offers investors a collaborative tool for an active ownership process. Investors can follow and take part in GES engagement dialogues, as well as extract information that is essential for investment decision and ownership process through a web-based platform.
Proactive thematic engagement
GES has developed a selection of thematic engagements that focus on raising standards across industries and on creating positive change in regards to some of the most challenging ESG risk issues. The thematic engagements are client driven and focus on issues and themes, which are most material to clients. Currently, GES provides the following thematic engagements:
- Business ethics and culture
- Carbon risk
- Children’s rights
- Emerging markets
- Food supply chain
- Japan Stewardship Engagement
- Pharmaceutical industry
- Sustainable seafood
Voting and engagement overlay services
GES offers a fully automated proxy voting service and engagement services that focus on corporate governance across clients’ active and passive portfolios. It is a tailored outsourcing service of the voting process where GES works as an extension to the investor’s internal team.
The engagement spans three years and focuses initially on 7 large-cap companies. Our business partner, Governance for Owners Japan (GOJ), is leading the engagement process based on the methodology developed by GES and with our full support. The main areas that we will focus on in this engagement include:
- Effectiveness of the board
- Compensation structure
- Succession planning
- Escalation of issues