reo® – the responsible approach to investment
reo® aims to encourage the companies in which Friends Provident invests to improve their management of a range of important social, ethical and environmental issues to enhance shareholder value
It is similar to Stewardship in that it engages with companies to resolve complex problems and encourage improvement, but rather than screen companies, it uses our influence as a major shareholder to bring about change instead. Hence the name, responsible, engagement, overlay.
reo® was selected by the Friends Provident board in April 2000 in response to mounting evidence that:
- the public wanted institutional investors to take a more socially responsible approach to investment if this can be done without hurting financial returns;
- the financial performance of companies can be affected by ethical, social and environmental factors and that good management of these factors is a contributor to business success.
reo® aims to encourage companies to behave more responsibly in a way that is consistent with creating shareholder value. This means that it will only engage with companies when there is a reasonable business case to do so.
To view the latest reports on recent engagement activity go to Engagement reports and news.
Voting
Friends Provident is also one of the first companies to fully disclose the way it votes the shareholdings held in other companies at those companies' meetings worldwide. We publish monthly reports that list the way we have voted and include a brief explanation of every vote not supporting the recommendations of the boards of those companies.
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Find out what makes a responsible investment, how customers can go green and how we exert our influence as a shareholder. Read more