What is Engagement

whatisengagement[1]PNO Media has appointed Hermes Equity Ownership Services (EOS) as its engagement services provider for its pension fund holdings to screen its holdings for breaches of its Corporate Socially Responsible Investment Code and to exercise its voting rights and engage with companies in the fund’s portfolios. As such, EOS will monitor the companies in which PNO Media invests in order to ensure that they are taking appropriate steps to produce sustainable financial returns for shareholders.

Where concerns are raised through the monitoring or voting processes, or through another source EOS will consider engagement with the company, based on an assessment of the likely impact of the engagement and the ultimate benefit to the value of PNO Media’s holding. Engagements may involve:

  • Meetings with executive and non-executive directors
  • Discussions with shareholders
  • Participation in collaborative investor initiatives
  • Discussions with governments and regulators
  • Submission of shareholder resolutions at general meetings as appropriate

Company-specific engagements will normally be undertaken where EOS believes that:

1.   Engagement will lead to an increase in the value of a company’s shares
2.   Engagement will prevent or limit a decrease in the value of a company’s shares

Proposals for engagements will usually involve some breach of the financial, strategic, operational, legal, social, environmental and ethical or governance principals referenced in the Hermes Principles or as otherwise agreed with PNO Media.