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APPROACH, GOVERNANCE AND ENGAGEMENT
Our Approach, Governance and Engagement
In Our CEO's Words
In Our CEO’s Words
Hear from Michael Roberge, MFS chair and CEO, on the evolution of sustainability and why client alignment remains our north star.
Our Approach to Sustainability
Our Approach to Sustainability
Three Pillars Underpinning Our Strategic Approach to Sustainability
Our purpose is to create value responsibly. That’s why we assess sustainability issues that could materially affect our clients, our business and our investments.
But it’s not just about bottom-up research. We believe constructive stewardship gives us a deeper understanding of the companies we invest in so we can better deliver durable competitive advantages and financial returns.
Resourcing Our Firm’s Sustainability Strategy
Resourcing Our Firm’s Sustainability Strategy
At the heart of our commitment to sustainability is a decentralized approach. Because we spread the responsibility for integrating material sustainability factors across our global investment team, ESG considerations are handled by the same people who are making investment decisions all day long — not a separate team. Bringing together financial and nonfinancial analysis equips our decision-makers with a comprehensive view of the companies and issuers they cover.
MFS Sustainability Strategy and Governance Structure
To support this approach, we’ve set-up a collaborative global structure to share insights and provide context for every decision.
Examples of Engagement in Action
Examples of Engagement in Action
As well as bottom-up research, active ownership requires thoughtfully engaging with companies on the most material sustainability issues.
Explore case studies on our discussions with companies and issuers:
- Michelin’s positive sustainability story, despite currently being a higher emissions company
- Enel’s dialogue with Italian union partners as part of the clean energy transition
- Danone’s commitment to no deforestation across its primary deforestation-linked commodities
- The New Zealand Local Government Funding Agency's fixed income stewardship
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CLIENT ALIGNMENT
Client Alignment
Regular Review of Industry Initiatives
Regular Review of Industry Initiatives
Working together with the broader investment community can boost the effect of our sustainability initiatives and help clients fulfill their fiduciary duties.
Learn how we decide which initiatives to join and the extent of their impact.
TCFD Action Plan
TCFD Action Plan
Because climate change creates financially material risks and opportunities for most companies, investors need a pragmatic plan to position their portfolios.
Our 2023 Strategic Climate Action Plan is written in line with the Task Force on Climate-Related Financial Disclosures (TCFD) and provides the following:
- An overview of TCFD and reporting requirements
- Details on our commitment to net zero
- Metrics and targets for our investments
- A roadmap for 2024
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NET ZERO ROADMAP
Our Roadmap to Achieving Net Zero
NZAM Commitment and Approach
NZAM Commitment and Approach
As a signatory to Net Zero Asset Managers initiative (NZAM), we’re committed to supporting the goal of achieving net zero carbon emissions by 2050 or sooner.
Carbon Intensity at MFS Strategy Level
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OUR INCLUSIVE CULTURE
Our Inclusive Culture
DEI at MFS
DEI at MFS
Diversity, equity and inclusion (DEI) are foundational to the work we do as active managers, essential to our longevity and critical to our purpose of creating value responsibly.
We believe operating from a place of inclusion means welcoming the ideas of diverse thinkers and making our firm a place where every voice is valued and everyone can flourish.
2023 Firmwide Highlights - DEI Progress
CONNECT WITH GLOBAL ORGANIZATIONS
AND SUPPORT DIVERSE COMMUNITIES
- CFA DEI Code Signatory
- CEO Action for Diversity & Inclusion signatory
- Workforce Disclosure Initiative (ShareAction) participant and supporter
- Member of Nicsa’s Diversity Project
- Member of the Diversity Project UK
- Support underserved communities through decades-long charitable partnerships
SELF-IDENTIFICATION METRICS
- 2.3% LGBTQ+ identifying
- 8.7% Employees with disabilities
- 0.6% Protected veteran
294 99 MFS may incorporate environmental, social, or governance (ESG) factors into its investment decision making, fundamental investment analysis and engagement activities when communicating with issuers. The statements or examples provided above illustrate certain ways that MFS has historically incorporated ESG factors when analyzing or engaging with certain issuers but they are not intended to imply that favorable investment, ESG outcomes or engagement outcomes are guaranteed in all situations or in any individual situation. Engagements typically consist of a series of communications that are ongoing and often protracted and may not necessarily result in changes to any issuer’s ESG-related practices. Issuer outcomes are based on many factors and favorable investment or engagement outcomes, including those described above, may be unrelated to MFS analysis or activities. The degree to which MFS incorporates ESG factors into its investment decision making, investment analysis and/or engagement activities will vary by strategy, product, and asset class, and may also vary over time, and will generally be determined based on MFS’ opinion of the relevance and materiality of the specific ESG factors (which may differ from judgements or opinions of third-parties, including investors). Any examples above may not be representative of ESG factors used in the management of any investor’s portfolio. Any ESG assessments or incorporation of ESG factors by MFS may be reliant on data received from third-parties (including investee companies and ESG data vendors), which may be inaccurate, incomplete, inconsistent, out-of-date or estimated, or only consider certain ESG aspects (rather than looking at the entire sustainability profile and actions of an investment or its value chain), and as such, may adversely impact MFS’ analysis of the ESG factors relevant to an investment. The information included above, as well as individual companies and/or securities mentioned, should not be construed as investment advice, a recommendation to buy or sell or an indication of trading intent on behalf of any MFS product.
The views expressed are those of the author(s) and are subject to change at any time. These views are for informational purposes only and should not be relied upon as a recommendation to purchase any security or as a solicitation or investment advice. No forecasts can be guaranteed.
Unless otherwise indicated, logos and product and service names are trademarks of MFS® and its affiliates and may be registered in certain countries.
This material is directed at investment professionals for general information use only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. Any securities and/or sectors mentioned herein are for illustration purposes and should not be construed as a recommendation for investment. Investment involves risk. Past performance is not indicative of future performance. The information contained herein may not be copied, reproduced or redistributed without the express consent of MFS Investment Management (“MFS”). While the information is believed to be accurate, it may be subject to change without notice. MFS does not warrant or represent that it is free from errors or omissions or that the information is suitable for any particular person’s intended use. Except in so far as any liability under any law cannot be excluded, MFS does not accept liability for any inaccuracy or for the investment decisions or any other actions taken by any person on the basis of the material included. MFS does not authorize distribution to retail investors.
Our Approach, Governance and Engagement
In Our CEO's Words
In Our CEO’s Words
Hear from Michael Roberge, MFS chair and CEO, on the evolution of sustainability and why client alignment remains our north star.
Our Approach to Sustainability
Our Approach to Sustainability
Three Pillars Underpinning Our Strategic Approach to Sustainability
Our purpose is to create value responsibly. That’s why we assess sustainability issues that could materially affect our clients, our business and our investments.
But it’s not just about bottom-up research. We believe constructive stewardship gives us a deeper understanding of the companies we invest in so we can better deliver durable competitive advantages and financial returns.
Resourcing Our Firm’s Sustainability Strategy
Resourcing Our Firm’s Sustainability Strategy
At the heart of our commitment to sustainability is a decentralized approach. Because we spread the responsibility for integrating material sustainability factors across our global investment team, ESG considerations are handled by the same people who are making investment decisions all day long — not a separate team. Bringing together financial and nonfinancial analysis equips our decision-makers with a comprehensive view of the companies and issuers they cover.
MFS Sustainability Strategy and Governance Structure
To support this approach, we’ve set-up a collaborative global structure to share insights and provide context for every decision.
Examples of Engagement in Action
Examples of Engagement in Action
As well as bottom-up research, active ownership requires thoughtfully engaging with companies on the most material sustainability issues.
Explore case studies on our discussions with companies and issuers:
- Michelin’s positive sustainability story, despite currently being a higher emissions company
- Enel’s dialogue with Italian union partners as part of the clean energy transition
- Danone’s commitment to no deforestation across its primary deforestation-linked commodities
- The New Zealand Local Government Funding Agency's fixed income stewardship
Client Alignment
Regular Review of Industry Initiatives
Regular Review of Industry Initiatives
Working together with the broader investment community can boost the effect of our sustainability initiatives and help clients fulfill their fiduciary duties.
Learn how we decide which initiatives to join and the extent of their impact.
TCFD Action Plan
TCFD Action Plan
Because climate change creates financially material risks and opportunities for most companies, investors need a pragmatic plan to position their portfolios.
Our 2023 Strategic Climate Action Plan is written in line with the Task Force on Climate-Related Financial Disclosures (TCFD) and provides the following:
- An overview of TCFD and reporting requirements
- Details on our commitment to net zero
- Metrics and targets for our investments
- A roadmap for 2024
Our Roadmap to Achieving Net Zero
NZAM Commitment and Approach
NZAM Commitment and Approach
As a signatory to Net Zero Asset Managers initiative (NZAM), we’re committed to supporting the goal of achieving net zero carbon emissions by 2050 or sooner.
Carbon Intensity at MFS Strategy Level
Our Inclusive Culture
DEI at MFS
DEI at MFS
Diversity, equity and inclusion (DEI) are foundational to the work we do as active managers, essential to our longevity and critical to our purpose of creating value responsibly.
We believe operating from a place of inclusion means welcoming the ideas of diverse thinkers and making our firm a place where every voice is valued and everyone can flourish.
2023 Firmwide Highlights - DEI Progress
CONNECT WITH GLOBAL ORGANIZATIONS
AND SUPPORT DIVERSE COMMUNITIES
- CFA DEI Code Signatory
- CEO Action for Diversity & Inclusion signatory
- Workforce Disclosure Initiative (ShareAction) participant and supporter
- Member of Nicsa’s Diversity Project
- Member of the Diversity Project UK
- Support underserved communities through decades-long charitable partnerships
SELF-IDENTIFICATION METRICS
- 2.3% LGBTQ+ identifying
- 8.7% Employees with disabilities
- 0.6% Protected veteran
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MFS may incorporate environmental, social, or governance (ESG) factors into its investment decision making, fundamental investment analysis and engagement activities when communicating with issuers. The statements or examples provided above illustrate certain ways that MFS has historically incorporated ESG factors when analyzing or engaging with certain issuers but they are not intended to imply that favorable investment, ESG outcomes or engagement outcomes are guaranteed in all situations or in any individual situation. Engagements typically consist of a series of communications that are ongoing and often protracted and may not necessarily result in changes to any issuer’s ESG-related practices. Issuer outcomes are based on many factors and favorable investment or engagement outcomes, including those described above, may be unrelated to MFS analysis or activities. The degree to which MFS incorporates ESG factors into its investment decision making, investment analysis and/or engagement activities will vary by strategy, product, and asset class, and may also vary over time, and will generally be determined based on MFS’ opinion of the relevance and materiality of the specific ESG factors (which may differ from judgements or opinions of third-parties, including investors). Any examples above may not be representative of ESG factors used in the management of any investor’s portfolio. Any ESG assessments or incorporation of ESG factors by MFS may be reliant on data received from third-parties (including investee companies and ESG data vendors), which may be inaccurate, incomplete, inconsistent, out-of-date or estimated, or only consider certain ESG aspects (rather than looking at the entire sustainability profile and actions of an investment or its value chain), and as such, may adversely impact MFS’ analysis of the ESG factors relevant to an investment. The information included above, as well as individual companies and/or securities mentioned, should not be construed as investment advice, a recommendation to buy or sell or an indication of trading intent on behalf of any MFS product.
The views expressed are those of the author(s) and are subject to change at any time. These views are for informational purposes only and should not be relied upon as a recommendation to purchase any security or as a solicitation or investment advice. No forecasts can be guaranteed.
Unless otherwise indicated, logos and product and service names are trademarks of MFS® and its affiliates and may be registered in certain countries.
This material is directed at investment professionals for general information use only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. Any securities and/or sectors mentioned herein are for illustration purposes and should not be construed as a recommendation for investment. Investment involves risk. Past performance is not indicative of future performance. The information contained herein may not be copied, reproduced or redistributed without the express consent of MFS Investment Management (“MFS”). While the information is believed to be accurate, it may be subject to change without notice. MFS does not warrant or represent that it is free from errors or omissions or that the information is suitable for any particular person’s intended use. Except in so far as any liability under any law cannot be excluded, MFS does not accept liability for any inaccuracy or for the investment decisions or any other actions taken by any person on the basis of the material included. MFS does not authorize distribution to retail investors.