Over the last two years, we have taken positions in over 50 stocks and held over 300 meetings with portfolio companies in relation to this partnership. Here are our top lessons learned through this engagement:

1. Focusing on the long term through the noise has the potential for unique value

In the last two years, the discourse around the energy transition and the pressure on companies to act to reduce their emissions have drastically changed. In this challenging backdrop, our engagements have doubled down on targeting long-term value creation with positive actions that seek to drive down corporate emissions. Not only are companies responsive to investors focusing on long-term strategy and capital allocation decisions rather than having a myopic focus on the next quarter, but we also maintain a strong conviction that companies need to position themselves strategically through the energy transition to succeed. This is especially the case in the energy and materials sectors, where companies will be the most affected by the energy transition and where investor pressure to focus on business-as-usual activities is particularly strong.

2. Developing lighthouse engagements is key

Given the level of uncertainty around the energy transition and a tendency for some management teams to be anchored by legacy, companies are often reluctant to be ‘the first’…

Read the full ‘Thought Leadership’ article at the link below