Escalation of engagement refers to increasingly assertive actions taken by investors to address issues with investee companies that have not been resolved through initial engagement efforts.
1. Submitting Resolutions and Speaking at General Meetings: Submitting shareholder resolutions and speaking at general meetings are considered escalatory actions. These steps involve formal proposals that require a vote by shareholders and public statements at shareholder meetings, indicating a higher level of activism and pressure on the company to address the concerns raised by investors.
2. Other Engagement Actions:
Meeting with Investor Relations Team (Option A): This is a routine engagement action where investors seek information and dialogue but do not exert significant pressure.
Engaging Management through Operational Site Visit (Option B): While visiting operational sites and engaging management is important, it is generally seen as part of regular due diligence rather than an escalation of engagement.
References from CFA ESG Investing:
Escalation Strategies: The CFA Institute outlines various engagement and escalation strategies used by investors to influence corporate behavior. Submitting resolutions and speaking at general meetings are highlighted as more assertive actions taken when initial engagement efforts do not yield the desired results.