You are the company secretary of a listed food manufacturing company. Your Chairman informs you that he has been asked to meet with two major shareholders of the company. They are institutional investors who together own

The Institutional investors generally follow the given six Principles for Responsible Investment Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes. Principle 2: We will be active owners and incorporate ESG issues into ownership policies and practices. Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which they invest. Principle 4: We will promote acceptance and implementation of the Principles within the investment industry. Principle 5: We will work together to enhance effectiveness in implementing the Principles. Principle 6: We will each report on their activities and progress towards implementing the Principles. Institutional Investors activities may include: Monitoring and engaging with companies on matters such as strategy, performance, risk, capital structure, and corporate governance, including culture and remuneration. Engagement in purposeful dialogue with companies on major issues. Decision-making on matters such as allocating assets, awarding investment mandates, designing investment strategies, and buying or selling specific securities. They set the tone for stewardship and may influence behavioural changes that lead to better stewardship by asset managers and companies. Asset managers, with day-to-day responsibility for managing investments, are well positioned to influence companies' long-term performance through stewardship.