Fiduciary Voting Services

Avoid potential conflicts of interest when voting proxies

Fiduciary voting

Almost all investment management firms face potential conflicts of interest, including those that emerge when voting the proxies of companies in which material relationships exist. The key is in how firms manage these potential conflicts so they don’t become real.

Sustainalytics’ independent Fiduciary Voting Service enables investment managers to easily navigate these situations by outsourcing the vote decision and execution. We have over a decade of experience in supporting some of the world’s leading investment managers with their fiduciary voting requirements.

Key Benefits 

responsible owner

Manage compliance risks

responsibilities

Execute on your stewardship responsibilities even in situations where a potential conflict of interest may exist

regulations

Comply with relevant stewardship codes and regulation 

impartiality

Proactively manage reputational risk by maintaining impartiality 

experts

Rely on an experienced team with an established track record 

team

Have confidence that votes are executed according to policy guidelines 

Conflicts of Interest

Conflicts of interest may arise when the asset manager has a commercial relationship or other material connection with a portfolio company. At other times, competing priorities in relation to the same portfolio company may exist. This makes the independent exercise of voting rights more difficult. Such scenarios may include the following: 

Scenario One

The investment manager has a significant minority shareholding in the company and therefore a relationship with the board which makes robust implementation of the client’s voting policy more difficult.

 

Scenario Two

The portfolio company has a current or potential business relationship with the investment manager. For example:

  1. The investment manager provides management services to a listed investment trust
  2. The investment manager has a mandate from the company’s pension fund
  3. The portfolio company is a material client of the investment manager or vice versa

Scenario Three

An executive or director at the investment manager is also an executive or director at the portfolio company

Scenario Four

An executive or director at the investment manager is also an executive or director at the portfolio company

Why Sustainalytics?

Market standard

A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

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Award-Winning Research and Data

Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.

End to end

End-to-End ESG Solutions

ESG products and services that serve the entire investment value chain.

Expertise

25+ Years ESG Expertise

350+ ESG research analysts across our global offices.

Largest second party opinion provider

Largest Second-Party Opinion Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

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