Glossary

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Engagement
Engagement is an activity performed by investors (typically shareholders or bondholders) with the goal of convincing management to take account of environmental, social and governance criteria. This dialogue includes communicating with senior management and / or boards of companies and filing or co-filing shareholder proposals. Successful engagement can lead to changes in a company’s strategy and processes so as to improve ESG performance and reduce risks. Such engagement can be performed as direct interaction between an investor and an investee company or in the form of collaborative engagement, where a number of investors team up to hold a joint dialogue (often carried out by a respective service provider)
ESG – Environment, Social and Governance

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ESG Analysis
Such an analysis includes collecting information on how an investment target manages and performs on environmental, social and governance factors. When an investment institution wishes to track to what extent potential investments (e.g. companies, countries and issuers) are exposed to ESG risks and opportunities and how they actively manage them, they carry out an ESG Analysis
ESG Integration