Working with a global payments company to improve sustainability disclosures
One of our teams held a stake in a founder-led US$4.3 billion global payments technology business. While we appreciated the growth potential of the business and the strong management team, the company lacked robust and comprehensive reporting on material issues, including data security, data privacy, intellectual property protection, workforce and board diversity management, and the environmental footprint of its hardware infrastructure.
We engaged with the issuer over several years, encouraging the company to draft a comprehensive sustainability report that would detail its efforts and progress toward the environmental, social, and corporate governance issues material to its business and outlook.
The company published a report in August 2022 providing data on human capital management; data privacy; cybersecurity; diversity, equity, and inclusion; environmental stewardship; and corporate governance, among other matters, that will help investors better assess the company's risk/reward profile.
The case studies shown here are for illustrative purposes only, do not represent all of the investments made, sold, or recommended for client accounts, and should not be considered an indication of the ESG integration, performance, or characteristics of any current or future Manulife Investment Management product or investment strategy.
Manulife Investment Management conducts hundreds of ESG engagements each year but does not engage on all issues or with all issuers in our portfolios. We also frequently conduct collaborative engagements in which we do not set the terms of engagement but lend our support in order to achieve a desired outcome. Where we own and operate physical assets, we seek to weave sustainability into our operational strategies and execution. The case studies shown are a sampling across issues and geographies. Our approach to ESG investing and incorporation of ESG principles into the investment process differs by investment strategy and investment team. It should not be assumed that an investment in the company discussed herein was or will be profitable. Actual investments will vary and there is no guarantee that a particular fund or client account will hold the investments or reflect the characteristics identified herein. Please see our ESG policies for details.
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