How we invest

Managers also engage regularly with the companies they invest in and use their voting rights to make sure we’re positively shaping their future.

WTW meet frequently with the Managers, where they challenge them on ESG and stewardship. The overall portfolio is assessed and monitored by WTW against carbon as well as wider ESG metrics.

Alliance Trust's Carbon Footprint: 32.8% lower than the MSCI All Country World Index.

Tackling climate change: read about our commitment to net zero

*Willis Towers Watson, as at 30 June 20212. As measured by weighted average carbon intensity, which calculates carbon emissions per dollar of sales generated.

EOS already represent a wide range of institutions, with over $1.3trn of assets under advice,* this gives their views more weight when lobbying for companies to change, especially when compared to one investor acting alone.

Climate Action 100+**, of which ESO is a member, is an investor-led initiative that launched in December 2017 to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. Selected for engagement have been 167 focus companies, accounting for over 80% of corporate industrial greenhouse gas emissions. In 2020 they held a multi-stakeholder call with all the major European oil and gas companies. EOS noted the need for an enhanced focus on positive lobbying by the industry, so that the companies can play a role in the low-carbon transition. EOS raised concerns around leakage of emissions from the sector through divestment of assets, and the need for clear disclosure around the type of capital expenditure and divestiture. Subsequently, EOS had a call with investors to discuss feedback around the benchmarking methodology. It emphasised the need for alignment of capital expenditure with the goals of the Paris Agreement to take a dominant role within the methodology, as it could apply to multiple different strategies. EOS expects this to be core to the methodology, with supplementary assessment criteria for those companies looking to transition.

We regularly publish ESG metrics on our website, ensuring transparency for our investors.

*As at 31 December 2020 https://sustainability.hermes-investment.com/uk/en/intermediary/stewardship/#eos-at-a-glance

** EOS along with our manager Jupiter are signatories of Climate Action 100+ (https://www.climateaction100.org/) and are responsible for direct engagement with companies, which include names like BP, Heidelberg Cement and Suncor