FinanceMap scores this financial institution in the following areas. Please navigate to the relevant tab for in-depth analysis
FinanceMap assesses these portfolios for this financial institution. Please navigate to the relevant tab for in-depth analysis.
Fossil fuel companies are those whose primary sector falls within coal mining and services, or up-, mid-, and downstream oil and gas sectors. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Portion of AUM Assessed: $187B
| Holding Name | Contribution to Sector Production |
|---|---|
| Engie SA | 22.7% |
| Iberdrola SA | 14.3% |
| Kansai Electric Power Co Inc | 10.1% |
| Enel SpA | 9.6% |
| Duke Energy Corp | 9.0% |
| American Electric Power Company Inc | 7.2% |
| Southern Co | 5.8% |
| Dominion Energy Inc | 5.4% |
| Nextera Energy Inc | 4.2% |
| E.ON SE | 3.8% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Hyundai Motor Co | 34.6% |
| BYD Co Ltd | 33.4% |
| Tesla Inc | 13.6% |
| Honda Motor Co Ltd | 10.6% |
| Renault SA | 3.2% |
| Mahindra and Mahindra Ltd | 2.4% |
| General Motors Co | 1.3% |
| Ford Motor Co | 0.4% |
| Volkswagen AG | 0.3% |
| Suzuki Motor Corp | 0.1% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Glencore PLC | 100.0% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Expand Energy Corp | 16.5% |
| Exxon Mobil Corp | 11.0% |
| EQT Corp | 10.7% |
| Coterra Energy Inc | 9.7% |
| Shell PLC | 9.7% |
| Antero Resources Corp | 8.2% |
| Petroleo Brasileiro SA Petrobras | 7.6% |
| TotalEnergies SE | 5.9% |
| Canadian Natural Resources Ltd | 5.8% |
| ConocoPhillips | 5.4% |
Wellington Management appears to be engaging with companies around climate, however it is unclear whether its engagements and strategies are in line with limiting warming to 1.5°C. The asset manager has a framework informing its climate engagement strategy, highlighting its key priorities of financial disclosures, transition-risk mitigation, and physical-risk adaptation. There appears to be a defined structure for engagement activities and escalation monitored by its engagement tracker tool, although it is unclear how it prioritizes issues for escalation.
Wellington Management appears to be actively engaging companies around climate, outlining recent case studies on emissions reductions targets. For example, it advised Chevron on its emissions reduction plan, as well as successfully encouraged American Tower Corp. to set Science Based Targets. Wellington Management also appears to have expectations set for companies around indirect policy influence and has supported proposals around disclosure and lobbying alignment with the Paris Agreement, although it is unclear if the asset manager is actively engaging with companies on lobbying. The asset manager is involved with several collaborative initiatives and has particularly noted examples of several collaborative engagements via CA100+.
Wellington Management has described its stewardship governance structure and appears to regularly seek clients’ and beneficiaries’ views. Additionally, the asset manager is fully transparent about its current engagements and publishes quarterly reports that include all companies they have engaged with, the topics they engaged on, and case studies on select engagements. Wellington Management provides a detailed description of its review process for proxy advisors, and lists all proxy voting data on its website, however it does not provide rationale for voting decisions.
The asset manager does not appear to have actively participated in filing or co-filing climate-related shareholder resolutions, however, it appears to be using its shareholder authority to vote against directors on climate grounds.
Insightia data suggests that Wellington has mixed support of AGM resolutions InfluenceMap categorizes as in line with the Paris Agreement, supporting 12.5% in 2019 but showing increased support in recent years with 57.9% in 2020, 60.4% in 2021, and 49.1% in 2022.
FinanceMap's methodology to measure the engagement process on climate was developed in consultation with several of the world's leading asset managers and uses key aspects of the UK Financial Reporting Council's 2020 Stewardship Code . The Stewardship Code was chosen to benchmark engagement quality as it provides an ambitious framework and detailed definitions of what constitutes effective engagement. FinanceMap defines the term ‘engagement’ as referring to all investor actions undertaken to influence the management strategy of the companies they own including private communications with corporate management and appointed advisors; questions at AGMs/other company meetings; comments on the company in the media; escalation and the shareholder resolution process (filing, voting behavior). FinanceMap’s methodology breaks the engagement process down into a set of sub-activities and looks for evidence associated with these across publicly available data sources.
Climate-relevance categorization of shareholder resolutions is based on the IPCC’s Special Report on 1.5°C and its concluded need for “rapid and far-reaching transitions in land, energy, industry, buildings, transport, and cities.” FinanceMap scored voting on any resolution where the intent and likely outcome is consistent with this IPCC stated need. The voting data is drawn from asset managers' disclosures to the US Security Exchange Commission (SEC), asset manager websites (including third-party websites they link to), directly from the asset managers, and through specialist voting data provider Insightia. The full list of resolutions assessed is available here.
The following table outlines the key queries and data sources, which FinanceMap uses to assess asset managers' corporate engagement programs. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
