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. NILGOSC supports the use of voting as both: a pivotal tool for shareholders to improve corporate behaviour and act as good stewards; and as a means of fulfilling its fiduciary duty to its members.
The most recent peak voting period ended in June 2024. During the 12 months leading up to then; NILGOSC cast 2,919 votes at a total of 229 meetings, held by 193 globally listed companies. Of the 22 countries in which the investee companies were located, almost half of the resolutions were filed in North America (1,415 resolutions over 94 meetings).
It is recognised that public sector pension funds tend to have a much higher propensity to oppose management on resolutions when compared to the average shareholder. NILGOSC is no exception, actively expressing concerns over corporate governance issues through voting. In total, NILGOSC voted against management recommendation on 42.6% of all resolutions, whereas the average shareholder demonstrated a dissent level of 7.6% over the same period. The data does indicate that shareholders, as a whole, are ‘picking’ their battles though, which resulted in a small number of high-profile significant dissent levels.
The overwhelming majority of resolutions were proposed by management, with just 6.5% of resolutions 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 can be found on NILGOSC Voting Policy.
A report with full details of NILGOSC’s voting activities up to 30 June 2024, as well as full disclosure of how NILGOSC voted on Shareholder resolutions over the period is available on our Annual Voting Reviews page.
