Active Ownership
We believe we have a duty to deliver holistic outcomes for our clients that go far beyond the financial. Corporate climate change data, including carbon emissions, water consumption and waste generation, is explicitly integrated into our entire investment decision–making process.
Engagement
Our active engagement program seeks to promote greater environmental transparency, more informed and robust disclosure and encourages companies and issuers to become more resource efficient over time.
Our engagement allows us to:
- Enhance the efficacy of our internal research and Model of Resource Efficiency
- Share our expertise in environmental disclosure with corporate practitioners
- Improve sustainability reporting, promote better disclosure, transparency and resilience
Osmosis has developed a clear expertise in resource efficiency, corporate environmental reporting and the correct understanding, interpretation and integration of environmental data into investment theory. Our core active engagement is centered around this expertise, sharing best reporting practice with companies, explaining the importance of the requested data, learning from companies how to best use the data and explaining any changes in the resource consumption data. Our expertise gives us a clear mandate to engage with companies on these topics. We also have various themed engagement projects throughout the year, examples include commitment to reduce emissions and adoption of Paris aligned targets or goals.
5 star rating 2023
Osmosis achieved top scores for individual and collaborative engagement from the PRI in this year’s assessment.
Voting
Osmosis operates a climate orientated voting policy across all of our pooled funds. The policy utilises independent proxy advisory firm ISS to promote our sustainable climate ambitions and support best practices in regard of all environmental, social and governance issues.
ISS’ specialty Climate Voting Policy is based on principles consistent with good stewardship that incorporate specific climate change relevant information, flags, and voting recommendations, which institutional investors can use to apply their views on a portfolio company’s climate performance and disclosure. In the case of individual mandates Osmosis works with investors, where desired, to ensure that their own individual proxy voting strategies are enacted.
Collaboration
We recognise the benefits of working with like-minded peers to advocate for change at a broader market level. Collaboration is essential if we are to achieve a successful transition to a sustainable low carbon economy. To this end Osmosis maintains active relations with key organisations and asset owners to actively participate in joint initiatives. Osmosis was part of an early practitioners’ group on the EU Taxonomy with the UN PRI (United Nations Principles of Responsible Investment), serving as an unofficial try-out of the new proposed EU regulation on sustainable investment. Our research team also participated in GRI’s (Global Reporting Initiative) technical expert group on waste, developing a new reporting standard for corporates. Additionally, Osmosis is a signatory of Climate Action 100+, and collaborates with the CDP (Carbon Disclosure Project) in regular non-disclosure campaigns, urging companies to disclose environmental data.
We have just launched the Non-Disclosure+ Campaign in collaboration with our clients, targeting the top 10 market cap companies (as of 01/08/24) that we have classified as non-disclosing. With the combined weight of our collective assets behind it and the size of the target companies, we believe this campaign can create positive impact for sustainability at a market-level.