How have we helped?
We believe we can create better outcomes for our clients by actively engaging when we invest. In 2024, Quintet voted on over 4,402 proposals at more than 287 shareholder meetings across the world.
Our voting group comprises representatives of diverse investment teams overseeing voting decisions.
Support for environmental proposals: 53%. This is 2.5x the industry average
Support for social proposals: 44%. This is almost triple the industry average
Support for governance proposals: 39%. This is greater than the industry average
CASE STUDIES
Engagement with companies
Netflix Inc.
Overview
Netflix is one of the world’s largest streaming platforms, delivering entertainment to hundreds of millions globally. EOS’ engagement with Netflix has focused on encouraging the company to explain clearly how it makes decisions about sensitive or controversial content, and how ethical considerations are built into that process.
Engagement Activities and Outcomes
EOS first raised their request in 2022, asking Netflix to publish a set of guiding principles or standards for how it handles ethical content decisions. After some discussions, Netflix acknowledged our request and agreed to consider further disclosures.
By the end of 2024, Netflix had made progress, including appointing a privacy officer and outlining the procedures it uses when dealing with sensitive content issues. The company has updated parts of its human-rights policy and explained its general approach to freedom of expression, based on its own internal content standards.
EOS continues to encourage Netflix to publish a clear set of principles to help investors and other stakeholders understand how it manages these important societal issues, which could reduce reputational risks.
Apple
Overview
Apple is one of the world’s most recognised technology companies. EOS have been encouraging Apple to be more open about the taxes it pays, in line with international best practices. Greater transparency can help build trust with stakeholders and demonstrate that the company is managing its responsibilities carefully.
Engagement Activities and Outcomes
At the end of 2023, EOS raised the importance of better tax reporting with Apple’s leadership, noting that we believe it is in the company’s own interest. The company acknowledged our request.
In 2024, Apple made plans to align its tax disclosures with upcoming US standards. EOS continued to engage with the company to encourage even clearer reporting, against a global framework, helping to highlight Apple’s efforts to manage risks and opportunities.
Following a Q4 2024 tax-related charge of $10 billion, EOS reiterated client support for more granular tax transparency, noting that this could help Apple build a more positive regulatory halo that could benefit the company in the face of multiple challenges.
EOS remains in dialogue with Apple to support greater transparency around its tax practices and encourage it to prepare for future regulatory expectations.
Coca-Cola Co.
Overview
Coca-Cola is one of the world’s largest beverage companies, operating a complex supply chain across many countries. With large supply chains come risks, including potential human-rights issues such as poor working conditions. EOS engaged with Coca-Cola to strengthen how it identifies and manages these risks, and to encourage the company to show how it provides support when problems are identified.
Taking action on human rights not only protects workers but also helps companies avoid reputational and operational risks.
Engagement Activities and Outcomes
In late 2023, EOS raised concerns with Coca-Cola about improving transparency on how it manages human-rights issues in its supply chain. In response, Coca-Cola agreed to consider the request to enhance its public reporting and to hold discussions with its human-rights specialists.
By early 2024, Coca-Cola shared real examples of progress. This included consideration for enhanced childcare access where child-labour risks were identified in agricultural supply chains. The company is also building a new human-rights framework developed with external experts, focusing on stronger partnerships, better use of technology and a clearer approach to solving problems when they arise.
EOS continues to encourage Coca-Cola to provide more detailed updates on how these processes are being applied across its global operations
Taking responsibility
Our parent company Quintet are proud members of the Climate Action 100+ initiative, a leading collaborative investor engagement on climate change. They are also signatories of the Principles for Responsible Investment (PRI), the world’s leading proponent of responsible and sustainable investing. By participating in these influential networks, we reinforce our commitment to driving meaningful change.
Active ownership reports
How we vote
Where possible and feasible, we seek to vote at all shareholder meetings of the companies in which we invest for our clients. Currently, we vote for direct line equities in portfolios of our in-house funds.
How we engage
We invest in a wide range of companies to align with the diverse needs of our clients. As many of these companies are large, our direct investments may be small relative to the size of the firm. To be effective in engaging with these companies, we believe that collaborative engagement is likely to achieve better results than efforts we might undertake on our own. Our parent company Quintet have therefore hired a specialised external service provider, EOS Hermes, to conduct engagement on our behalf. In cases where collaborative engagement is not practical, we may undertake direct engagement ourselves with the companies we invest in.
Do your investments reflect your values?
Start your investment journey today by contacting one of our experts in your local office.
Source
^Period 2022. Glass Lewis reported in 2022 that average shareholder support for environmental and social proposals was respectively 35% and 25%.