NILGOSC is committed to responsible investment, and undertakes a range of activities to promote positive environmental, social and governance (ESG) practices. NILGOSC believes that, as a responsible investor, it has a legitimate interest in the management and corporate governance of the companies in which it invests, and supports the use of voting as a pivotal tool for shareholders to improve corporate behaviour and act as good stewards.
The most recent peak voting period ended in June 2023, and during the 12 months leading up to 30 June 2023: NILGOSC cast 2,308 votes at a total of 203 meetings, held by 151 globally listed companies. Of the 21 countries in which the investee companies were located, most resolutions were filed in North America (1,097 resolutions over 76 meetings).
In total, 39.8% of all votes NILGOSC cast were made against management recommendations, which demonstrates that it is more active in expressing concerns through voting than the average shareholder (who demonstrates an average dissent level of 7.2%). It is recognised that public sector pension funds tend to have a much higher propensity to oppose management on resolutions than the general shareholder average, and the data indicates that shareholders, as a whole, are ‘picking’ their battles; which resulted in a small number of high-profile significant dissent levels over the period, most notably regarding remuneration reports.
The overwhelming number of resolutions were proposed by management, however, 6.2% of resolutions were proposed by shareholders. NILGOSC’s policy was to support those shareholder proposals which sought governance improvements, in cases where compelling arguments were made by the proponent and where the proposal followed market good practice. NILGOSC believes that all resolutions, particularly those proposed by shareholders, should be reviewed on a case-by-case basis, and NILGOSC supports proposals that are: compatible with its policies; follow good market practice; and are in the best interests of shareholders.
NILGOSC also has a bespoke Voting Policy which sets out its expectations for good corporate governance, including how companies manage their impact on society and the environment. More information about NILGOSC’s Voting Policy, which is updated annually, can be found on NILGOSC Voting Policy.
A report with full details of NILGOSC’s voting activities up to 30 June 2023, as well as full disclosure of how NILGOSC voted on Shareholder resolutions over the period is available on our Annual Voting Review page.