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Step up with active ownership

You’re saving in a Pension, Stocks and Shares ISA or Unit Trust / Investment Account that invests your money in our funds. Some of our funds directly invest in bonds and shares your behalf. Some of our funds invest in a collection of other funds - our funds that do that are known as funds of funds.

Owning shares means being a shareholder and getting the opportunity to influence the companies invested in, by voting on what the company does. For both shares and bonds, there is the opportunity to influence companies by engaging with them on important issues. For our directly invested funds our expert Investment Adviser Aberdeen Link opens in a new window votes and engages with companies. In our funds of funds, both voting, and engagement is carried out by the Fund Manager of the fund we invest in.

Being an active owner means making sure the voice your money has is being used to influence companies with the aim to make sure they put your money to good use. This means considering more than just the financial performance of the company – it’s also about considering the affect they have on the world and working to make it positive. More and more, it means looking at the company’s plans for the future to consider whether these are good for people and the planet.

We are moving to investing responsibly across all of our funds. This is shifting our investments from just following different stock market indices, where we don’t pick and choose the companies we invest in, to considering people and the planet in the way they are using your money to grow. An important part of this is using the voice your money has through active ownership; we need to make sure the experts we work with such as our Investment Adviser Aberdeen and other Fund Managers are engaging with companies on the most important issues and – if investing in shares – using voting rights to work towards positive change.

Our Investment Adviser Aberdeen has a policy which sets out their approach to active ownership and the issues they seek to influence companies on. Check it out here to read the policy Link opens in a new window

Engage towards positive change

Our funds invest in a lot of companies, so they need to engage on the most important issues and the companies that need to change the most to move towards being positive in their impact.

Funds Managers will have processes in place to work with companies and use common goals with other investors to try to progress important issues for everyone – like human rights and reducing carbon emissions.

Votes matter

For the funds that invest directly in shares, these come with a right to vote in the decisions companies make in their annual general meeting. Fund Managers will have an approach to voting and this includes using that power along with investor engagement to raise issues they believe are important with companies, as well as raising objections on decisions they disagree with.

For the two Virgin Money funds that invest directly in shares, the tables below show part of our voting record during 2024. It lists, the most significant votes made by our Investment Adviser Aberdeen on our behalf on important topics relating to the Environment (the planet), Social (people) and Governance (how companies are run).

Company NameMatter voted onVote direction recommended by CompanyVote direction takenVoter RationaleOutcome of vote
Unilever Plc: Consumer GoodsEnvironment: Approve Climate Transition Action PlanForAbstainWhile we welcome the intention to increase climate-related transparency and accountability, we have reservations about the implications of Say on Climate votes. We are of the view that presenting climate strategy as a standalone voting item risks diminishing both the integration of climate in strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality climate disclosure is through a combination of targeted engagement and voting on conventional resolutions, focused on our highest financed emitters and companies we identify as climate laggards. We have therefore chosen to abstain on this resolution.Pass
Aviva Plc: InsuranceEnvironment: Approve Climate-Related Financial DisclosureForAbstainWhile we welcome the intention to increase climate related transparency and accountability, we have reservations about the implications of Say on Climate votes. We are of the view that presenting climate strategy as a standalone voting item risks diminishing both the integration of climate in strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality climate disclosure is through a combination of targeted engagement and voting on conventional resolutions, focused on our highest financed emitters and companies we identify as climate laggards. We have therefore chosen to abstain on this resolution.Pass
HSBC Holdings Plc: BankingSocial: Instruct the Board to Align Pension Inequality with their Commitment to Reduce the Gender Pay Gap, by Removing the Impact of State Deduction from the Members of the Post 1974 Midland Section of the HSBC Bank (UK) Pension SchemeAgainstAgainstShareholder Proposal. We have discussed the issue with the bank who have advised that it has taken several steps to both engage with and reach agreement with the proponent. The resolution is overly prescriptive and restricts and binds the bank to a specific course of action. A vote against is warranted.Fail
Shell Plc: EnergyEnvironment: Advise Shell to Align its Medium-Term Emissions Reduction Targets Covering the Greenhouse Gas (GHG) Emissions of the Use of its Energy Products (Scope 3) with the Goal of the Paris Climate AgreementAgainstAgainstShareholder Proposal. Aberdeen frequently engages with Shell as part of a dedicated engagement programme and has established milestones for the company concerning climate. We acknowledge positive steps taken by the company, for example in relation to significant near-term investment in low carbon energy solutions. However, we note the changes to the company’s climate strategy and targets that were announced at its 2024 Annual ESG Update. Amendment of targets can erode investor confidence and we will make this a key issue for future engagement. We remain concerned that the resolution may not result in real-world emissions reduction and could have other unintended consequences. We have therefore opted to vote against the resolution but will continue our engagement with the company and could take voting action in future.Fail
Empiric Student Property PLC: Student AccommodationEnvironment, Social and Governance: Approve the Company's Future ESG CommitmentsForAbstainWhile we welcome the intention to increase sustainability and climate-related transparency and accountability, we have reservations about the implications of the proposed recurring advisory vote. We are of the view that presenting sustainability and climate strategy as a standalone annual voting item risks diminishing both the integration in overall corporate strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality sustainability and climate disclosure is through a combination of targeted engagement and voting. We have therefore chosen to abstain on this resolution.Pass
Essentra Plc: Component ManufacturerEnvironment: Approve Climate Transition Action PlanForAbstainWhile we welcome the intention to increase climate-related transparency and accountability, we have reservations about the implications of votes on climate strategy. We are of the view that presenting climate strategy as a standalone voting item risks diminishing both the integration of climate in strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality climate disclosure is through a combination of targeted engagement and voting on conventional resolutions.Pass
Glencore Plc: MiningEnvironment: Approve 2024-2026 Climate Action Transition PlanForAbstainWhile we welcome the intention to increase climate-related transparency and accountability, we have reservations about the implications of proposals concerning climate strategy. We are of the view that presenting climate strategy as a standalone voting item risks diminishing both the integration of climate in strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality climate disclosure is through a combination of targeted engagement and voting on conventional resolutions, focused on our highest financed emitters and companies we identify as climate laggards. We have therefore chosen to abstain on this resolution. Glencore falls into scope of our dedicated engagement programme concerning climate change, for which we have set engagement milestones.Pass
National Grid Plc: Electricity and GasEnvironment: Approve Climate Transition PlanForAbstainWhile we welcome the intention to increase climate-related transparency and accountability, we have reservations about the implications of climate votes relating to corporate strategy. We are of the view that presenting climate strategy as a standalone voting item risks diminishing both the integration of climate in strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality climate disclosure is through a combination of targeted engagement and voting on conventional resolutions, focussed on our highest financed emitters and companies we identify as climate laggards. We have therefore chosen to abstain on this resolution.Pass
Pennon Group Plc: Water and WasteEnvironment: Approve Climate-Related Financial DisclosuresForAbstainWhile we welcome the intention to increase climate-related transparency and accountability, we have reservations about the implications of Say on Climate votes. We are of the view that presenting climate strategy as a standalone voting item risks diminishing both the integration of climate in strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality climate disclosure is through a combination of targeted engagement and voting on conventional resolutions, focussed on our highest financed emitters and companies we identify as climate laggards. We have therefore chosen to abstain on this resolution.Pass
  Governance: Approve Remuneration ReportForAgainstWe have reservations that the new CFO was appointed on a salary which was 47% higher than his predecessor, with a subsequent increase proposed for the upcoming year. While the salary may have been necessary to facilitate his recruitment, we have concerns regarding the positioning when comparing to sector peers of a larger size. In respect of broader remuneration outcomes, we welcome the decision to reduce bonus awards to nil in view of controversies including the parasite outbreak.Pass
Ninety One Plc: Investment FirmEnvironment: Approve Climate StrategyForAbstainWhile we welcome the intention to increase climate-related transparency and accountability, we have reservations about the implications of Say on Climate votes. We are of the view that presenting climate strategy as a standalone voting item risks diminishing both the integration of climate in strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality climate disclosure is through a combination of targeted engagement and voting on conventional resolutions, focussed on our highest financed emitters and companies we identify as climate laggards. We have therefore chosen to abstain on this resolution.Pass
Oxford Instruments Plc: Scientific InstrumentationGovernance: Approve Remuneration ReportForForPrior to voting we engaged with the Chair of the Remuneration Committee to discuss the Long-Term Incentive(LTI) targets as the EPS and ROCE ranges had been decreased from previous levels. We also sought more detail around the sustainability metrics. We were provided with sufficient rationale around the adjustment to the financial targets, and were satisfied with explanations on the amendment to the carbon reduction metric and the decision not to adjust the targets related to females in management. Following consideration we were comfortable to support the Remuneration Report however we will review the targets set for next year’s LTI as we understand the reduction in ranges is one-off.Pass
Cranswick Plc: Food ProducerGovernance: Approve Remuneration PolicyForForThe company consulted us on the proposed Remuneration Policy and we engaged to exchange views. Following revisions to initial proposals we were comfortable to support.Pass
Bytes Technology Group Plc: ITGovernance: Accept Financial Statements and Statutory ReportsForForWe voted in favour of this proposal despite the controversy surrounding former CEO Neil Murphy’s unauthorised trading. During engagement with the company, we encouraged them to carry out an external investigation, the findings of which have been publicly reported.Pass
Harbour Energy Plc: Oil and GasGovernance: Approve Proposed Acquisition of Target PortfolioForForWe are supportive of the transaction.Pass
  Governance: Authorise Issue of Equity in Connection with the AcquisitionForForWe are supportive of the transaction.Pass
CMC Markets Plc: CMC Online TradingGovernance: Re-elect James Richards as DirectorForForBoard gender diversity is not in line with our expectations however we recognise that this is due to the departure of Susanne Chishti at the AGM. We will monitor diversity in succession planning, noting that it is anticipated Mr Richards will himself step down at the 2025 AGM.Pass
SSE Plc: Energy and Utilities ProviderGovernance: Approve Remuneration ReportForForSSE has aligned its executive pension contributions in sufficient degree to those of the broader workforce, which had been a key consideration informing our previous votes against the remuneration policy.Pass
  Environment: Approve Net Zero Transition ReportForAbstainWhile we welcome the intention to increase climate-related transparency and accountability, we have reservations about the implications of climate votes relating to corporate strategy. We are of the view that presenting climate strategy as a standalone voting item risks diminishing both the integration of climate in strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality climate disclosure is through a combination of targeted engagement and voting on conventional resolutions, focussed on our highest financed emitters and companies we identify as climate laggards. We have therefore chosen to abstain on this resolution.Pass
Intermediate Capital Group Plc: Investment FirmGovernance: Approve Remuneration ReportForForThe remuneration policy increase reflects the move into the FTSE 100, is approximately in-line with peers, and vests over a 3-5 year horizon.Pass
Dr. Martens Plc: Footwear CompanyGovernance: Approve Remuneration PolicyForForThe remuneration policy is broadly unchanged and we are comfortable to support.Pass
  Governance: Approve Remuneration ReportForForWe note that the 2024 Long-Term Incentive (LTI) grants and targets are not yet finalised. While we would prefer to have this detail at the time of voting, we are comfortable to review the full disclosure that will be included in next year’s Annual Report. We note for 2023 the decision to reduce the normal LTI grant to reflect a lower share price, and the discretion used to waive any bonus due.Pass
Vodafone Group Plc: TelecommsGovernance: Approve Remuneration ReportForForUpon inspection the Annual Report does show the exact metrics on which the Long-Term Incentive Payment vesting is based, so we suspect that this could be a data error.Pass
Intermediate Capital Group Plc: Investment FirmGovernance: Re-elect William Rucker as DirectorForForWe note that following the AGM the board will not meet the FCA’s diversity requirements. In respect of gender diversity the board had met the target of 40% female membership in early 2024, however following the retirement of Amy Schioldager at the AGM this will drop to one third. We will monitor progress to strengthen the gender diversity of the board following her departure. While there is no director from an ethnic minority background we are mindful that the board anticipate an appointment shortly. In view of the reason for the reduction in gender diversity and the commitment regarding ethnic diversity we are comfortable to support the re-appointment of the Nomination Committee Chair.Pass
Fuller, Smith & Turner Plc: BreweryGovernance: Approve Remuneration ReportForAgainstWe were not supportive of the Recovery Long-Term Incentive Payment and for consistency are note supportive of the committees use of its discretion to allow part of it to vest.Pass
The British Land Co. Plc: Real EstateGovernance: Approve Remuneration ReportForForWhile the company has not confirmed the specific award level for the Long Term Incentive, we note that targets are disclosed up front and the award will not be more than 250% of salary.Pass
Molten Ventures Plc: Venture CapitalGovernance: Approve Remuneration ReportForForWhilst the rights issue was dilutive (circa 10%) it materially reduced the downside risks of low liquidity for the group and increased the ability to invest at a likely attractive point in the cycle. The success or otherwise will likely not emerge for some years, but in the short term we supported the deal and have seen the share price rise strongly since. As such, it does not seem appropriate to penalise management for conducting the raise.Pass
Company NameMatter voted onVote direction recommended by CompanyVote direction takenVoter RationaleOutcome of vote
Deere & Company: Agricultural Machinery ManufacturerEnvironment: Report on GHG Reduction Policies and Their Impact on Revenue GenerationAgainstAgainstShareholder proposal. Deere & Company’s climate policy appears to be robust and in line with Task Force on Climate-related Financial Disclosure (TCFD) recommendations including board oversight, metrics and targets. The company certified its emissions targets with the Science Based Targets Initiative in October 2022 in line with a 1.5 Degrees pathway, which address the full scope of the company’s emissions. Considering the company’s sufficient disclosures and approach, a vote against is warranted at this time.Fail
Autodesk, Inc.: Design and Engineering SoftwareGovernance: Advisory Vote to Ratify Named Executive Officers’ CompensationForAgainstWe have engaged with Autodesk regarding the remuneration policy where we believe it could be enhanced. We prefer a simple Long-Term Incentive Payment (LTIP) structure. We asked for them to move away from their multi-year performance periods for the LTIP (1, 2 & 3 years) and have only one 3-year performance period. They would need to remove their current three annual award grants and just have one three year award grant. Ideally this new scheme would have financial Key Performance Indicators (KPI) that were different from the annual bonus scheme. We would want to see the financial KPI targets in advance of the performance period to show how much is achieved for threshold, target and maximum performance. These changes would mitigate any impact from the current issues where Free Cash Flow (FCF) was increased for one year and decreased for another, which under the current scheme could have given a better pay-out on a 1 year basis but if using a 3 year performance period would be irrelevant. Companies usually push back on the up front disclosure of targets on a confidentiality basis but disclosing a revenue or FCF is not commercially sensitive.Pass
   Governance: Provide Right to Call a Special MeetingAgainstForShareholder Proposal: A vote For this proposal is warranted as the right to call special meetings at a 15 percent ownership threshold would enhance shareholders rights.Pass
SSE Plc: UK Energy and Utilities ProviderGovernance: Approve Remuneration ReportForForSSE has aligned its executive pension contributions in sufficient degree to those of the broader workforce, which had been a key consideration informing our previous votes against the remuneration policy.Pass
  Environment, Social and Governance: Approve the Company's Future ESG CommitmentsForAbstainWhile we welcome the intention to increase sustainability and climate-related transparency and accountability, we have reservations about the implications of the proposed recurring advisory vote. We are of the view that presenting sustainability and climate strategy as a standalone annual voting item risks diminishing both the integration in overall corporate strategy and the direct responsibility and accountability of the board and individual directors. Should this resolution be approved, it may limit the scope for subsequent challenge. We believe that the most effective means for Aberdeen to encourage high-quality sustainability and climate disclosure is through a combination of targeted engagement and voting. We have therefore chosen to abstain on this resolution.Pass
Microsoft: Technology and Software CompanySocial: Report on Risks of Weapons DevelopmentAgainstAgainstShareholder Proposal: The company has clearly set out the mechanisms it has in place to ensure the appropriate oversight of its exposure to the defence sector and related risks. The company has also publicly disclosed its approach to the sector in both its corporate reporting and Form 10-K. This disclosure provides sufficient information to investors on the company’s approach to both financial and reputational risk. Considering existing reporting standards, the resolution is onerous and a vote against is warranted.Fail
   Governance: Assess and Report on Investing in BitcoinAgainstAgainstShareholder Proposal: There are no clear indicators that the company has not considered or appropriately applied diversification measures. In light of this a vote against is warranted.Fail
   Social: Report on Risks of Operating in Countries with Significant Human Rights ConcernsAgainstAgainstShareholder Proposal: This is the second consecutive year Microsoft received this proposal, which Aberdeen did not support at the 2023 Annual General Meeting. As Microsoft is a multinational organisation, its global infrastructure presence in cloud computing is key to be able to operate in global locations. The company is a signatory to the ‘Trusted Cloud Principles’ initiative and conducts independent third party reviews concerning new expansions in high risk areas guided by the ‘UN Guiding Principles on Business and Human Rights’. As the company appears to be well-placed to manage operational risk in different geographies, a vote against is therefore warranted.Fail
   Social and Environment: Report on Risks of Using Artificial Intelligence and Machine Learning Tools for Oil and Gas Development and ProductionAgainstAgainstShareholder Proposal: Microsoft has set sufficient emissions reduction goals and strategy to reduce emissions across its value chain. In FY23, Scope 1 and 2 decreased by 6.3% while Scope 3 emissions grew by 30.9%, however this was largely due to the construction of additional datacentres. Microsoft has also laid out several “Energy Principles” for doing customised business with energy companies, which includes the requirement of those companies to have a target for operational emissions. The company is taking adequate steps to address the risk associated with the sales of advantages technological solutions which may be linked with facilitating oil and gas development. A vote against this proposal is warranted.Fail
   Social: Report on Risks Related to AI Generated Misinformation and DisinformationAgainstAgainstShareholder Proposal: This is the second consecutive year Microsoft received this proposal, which Aberdeen did not support at the 2023 Annual General Meeting. We welcome Microsoft’s newly published Responsible AI Transparency Report in 2024 that discloses how it maps, measures and manages AI risks, which includes a third-party assessment of its information integrity mitigation service, Designer. While the risk to society of misinformation and disinformation posed by generative AI is high, Microsoft appears to be thoroughly reporting on the measures it is taking to mitigate these harms. A vote against is therefore warranted.Fail
   Social: Report on AI Data Sourcing AccountabilityAgainstForShareholder Proposal: This is the second consecutive year Microsoft received this proposal, which Aberdeen rdn did not support at the 2023 Annual General Meeting. We welcome Microsoft’s newly published Responsible AI Transparency Report in 2024 that discloses how it maps, measures and manages AI risks, which includes a third-party assessment of its information integrity mitigation service, Designer. While the risk to society of misinformation and disinformation posed by generative AI is high, Microsoft appears to be thoroughly reporting on the measures it is taking to mitigate these harms. A vote against is therefore warranted.Fail

A few more important things

There are a few other areas of active ownership that are considered and these help us to manage your investments.

Conflicts of interest based on ownership influence

That means keeping an eye out for things that we and other Fund Managers do that might stop us from making the most of this on your behalf.

Sweating the big stuff

Our Investment Adviser Aberdeen and other Fund Managers work with other investors on the big things that companies need to do to build towards positive change and a brighter future.

Lending out

A couple of our funds can lend out their investments, which also includes ownership rights. We make sure this is only in small amounts, for a short time.

Helpful Information