By engaging with companies the VPIC aims to promote the disclosure and reporting of sustainable business practices consistent with industry-recognized guidelines, such as those developed by the Value Reporting Foundation (formerly known as the Sustainability Accounting Standards Board), the Task Force on Climate-related Financial Disclosures (TCFD), as well as targets set forth by the Paris Climate Agreement. The Commission is committed to a long-term process of constructive engagement with companies to address environmental, social and governance (ESG) issues and considers financial factors and ESG factors in its investment decisions. To ensure ESG factors are integrated consistently into the investment decision process the VPIC adopted an ESG Policy, which is overseen by the VPIC ESG Committee. The Commission believes that the development, disclosure, and reporting of ESG analysis by investment managers equips portfolio teams to effectively monitor and mitigate the portfolio’s exposure to ESG-related risks and track performance outcomes. Please find details on the Commissions engagement activity in the update reports and within the Vermont State Treasurer’s ESG Reports linked below.