Promoting good business practices and strong corporate governance principles has been part of Trian’s operating strategy since our inception and we have had success in bringing about positive Environmental, Social and Governance (“ESG”) changes at many of our portfolio companies.
Trian believes that ESG issues can have an impact on a company’s culture and long-term performance and that companies can implement appropriate ESG initiatives that increase their sales and earnings. We also believe that the consideration of ESG factors enhances our overall investment process.
As outlined in our ESG Policy Statement, Trian may seek to implement ESG-related initiatives at portfolio companies that we believe will improve the long-term performance of the company, including:
- Environmental initiatives such as encouraging the production of more environmentally-friendly products, improving the sustainability of supply chains, and promoting the more efficient use of natural and renewable resources through the implementation of innovative solutions in food production, manufacturing and other industrial processes.
- Social initiatives such as refreshing consumer company product offerings to reflect customer demand for healthier products, supporting the investment of capital, research and development programs and marketing plans as part of the effort to enhance sustainable long-term earnings growth and create jobs at our portfolio companies, and facilitating the resolution of disputes between labor and management.
- Governance initiatives such as board refreshment to ensure that boards are made up of individuals with diverse backgrounds and experiences who are positioned to help the company achieve its goals, realignment of executive pay to put greater emphasis on long-term performance based compensation to align management’s interests more closely with those of long-term shareholders, and enhancing our portfolio companies’ corporate governance profile, such as by adopting proxy access.