Magellan Financial Group Ltd

Magellan views that it's best practice for companies to disclose donations, lobbying, and political expenditures. A reasonable threshold should be applied when disclosing trade and political associations. For issues such as climate transition, the company should assess the trade association's alignment to their own climate goals and strategy.

Magellan's climate stewardship strategy has been developed by senior members of the Investment Team and approved by Magellan's Risk and Compliance Committee ("RCC"), a delegate of the MAM Board. [...] Magellan's Investment Team reviews climate related targets and commitments of companies in all strategies, at least annually. This includes: 1. Ambition: A commitment to net-zero by 2050; 2. Targets: Near- and medium-term emission reduction targets with a preference for external validation; 3. Strategy: Alignment to reporting in accordance with the Taskforce for Climate-related Financial Disclosures ("TCFD") and a credible strategy to achieve targets. [...] Engagement objectives are communicated to the priority companies by Magellan's Investment Team and reviewed at least annually. [...] Increased transparency on climate related lobbying.

Our philosophy is documented and approved by Magellan's Investment Committee (IC). While our stewardship philosophy has remained unchanged since implementation in 2009, we are constantly learning and listening to industry experts, responsible investment associations, companies and our clients to evolve our thinking to ensure our philosophy is in sync with the forefront in the industry. [...] Our ESG team is responsible for oversight of the implementation of stewardship execution. This process is reviewed regularly, with minor enhancements made as required. Major enhancements are discussed with and signed off by the Head of ESG, the IC and portfolio managers before implementation. We continue to enhance our approach and this year we have updated our ESG policy, Proxy voting policy and developed a Climate Stewardship strategy.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Magellan's ESG team independently reviews all ballots, including those related to climate. Proposed votes must be approved by the Lead Portfolio Manager.