We use voting as a means to hold companies accountable for developing and executing a strategy that aligns to long-term value creation, but we do not assume that past performance — positive or negative — will always be indicative of future results.
Proxy voting
/'präksi 'və tiŋ/ noun
A ballot cast by one person on behalf of a corporate shareholder who is unable to, or prefers not to attend a shareholder meeting.
Explanation of Nuveen's shareholder proposal voting
Our voting on shareholder proposals requires that a proposal meets the foundational criteria of materiality, investor relevance, appropriate for company responsiveness and is intended to improve company operations, products or services. If the foundational criteria are satisfied, then a case-by-case review looks at the extent to which the company has substantially implemented the proposal’s explicit request or whether the company has reporting, strategy or explicit performance that substantially addresses the stakeholder issue that is the focus of the proposal.
In terms of substantial implementation, it is a point-in-time assessment of the company’s strategy against the identified or projected risks and opportunities. The company’s strategy may prove to be more or less successful than anticipated and the timing and severity of risks and opportunities may require a recalibration in the future.
More information on our voting record can be found in Nuveen’s Annual Stewardship Report.
Glossary: O-R
Paris Agreement
An accord within the United Nations Framework Convention on Climate Change addressing greenhouse-gas-emissions reduction, adaptation and finance, beginning in year 2020. At the December 2015 Paris conference, 195 countries adopted the first-ever universal, legally binding global climate deal. The agreement sets out a global action plan to put the world on track to avoid dangerous climate change by limiting global warming to below 2°C.
Proxy voting
A ballot cast by one person on behalf of a corporate shareholder who is unable to, or prefers not to attend a shareholder meeting.
Principles for Responsible Investment (PRI)
Principles for Responsible Investment (PRI or UNPRI) is a United Nations-supported international network of investors working together to implement its six aspirational principles, often referenced as "the Principles". Its goal is to understand the implications of sustainability for investors and support signatories to facilitate incorporating these issues into their investment decision-making and ownership practices. In implementing these principles, signatories contribute to the development of a more sustainable global financial system.
Principles for Responsible Investment in Farmland
A set of guidelines developed by a group of UN Principles for Responsible Investment (PRI) signatories. The principles have evolved into the PRI Farmland Guidelines, which are designed to guide institutional investors that wish to invest responsibly in farmland.
Responsible investing
An investment philosophy that incorporates environmental, social and governance (ESG) factors into investment analysis, portfolio construction and ongoing monitoring across asset classes with the objective of enhancing long-term performance, managing risk and aligning client values.
RI principles at Nuveen include:
► ESG integration: we aim to incorporate material ESG factors into our investment process, across funds and asset classes.
► Stewardship: we connect using our influence with companies and issuers to help them innovate and operate more effectively, and partner with stakeholders to drive and advance ESG best practices.
► Impact: through our investing practices, we seek to drive positive environmental and social outcomes.
Other RI approaches include:
► Best in class: Selecting issuers that demonstrate better ESG characteristics within a particular sector, industry or peer group, and achieve a rating above a defined threshold.
► Divestment: The sale or disposition of securities or other assets based on corporate behavior that is not aligned with specific environmental, social and governance objectives, values or convictions.
► Green: Generally refers to the consideration of climate change and environmental impacts in portfolio construction, i.e., investments in clean tech, renewable energy and energy efficiency.
► Low carbon: Seeking to lower a portfolio’s overall carbon footprint by favoring companies with lower current carbon emissions, no fossil fuel reserves, or other green investments. Low-carbon strategies may satisfy clients seeking “fossil-fuel-free” and “green” investments.
► Negative/norm based screening: : Exclude sectors, companies, countries that do not meet minimum standards due to unacceptable downside risk or value misalignment. Also referred to as exclusionary screening.
► Social and environmental impact: : An approach that actively seeks to deliver a competitive return alongside a positive, measurable social or environmental outcome.
► Thematic: Targets investment themes or assets that contribute to specific issues or outcomes, e.g., climate change, gender.
► UN Sustainable Development Goal (SDG) alignment: Aligning investments to the Sustainable Development Goals – e.g., poverty, health, education, climate change and environmental degradation – to help connect business strategies, objectives and outcomes with global priorities.
