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Quarter 1 2026: Our active stewardship illustrated

Published on
12 May 2026
Read time
1 minute(s) read

As long-term investors, Carmignac actively engages with investee companies to drive continuous improvement in how they integrate environmental, social and governance (ESG) considerations into their practices, thereby supporting sustainable value creation.

Find out how our active approach to stewardship was borne out in Q1 2026.

18
Engagements held with investee companies.
100%
of meetings voted in Q1 2026.
45%
of meetings where Carmignac voted against management at least once*.

*This data refers to the number of meetings where Carmignac took a vote position against the recommendation of the board. In practice, this refers to votes cast against management-led resolutions and, in most cases, votes cast for shareholder-led resolutions (unless the shareholder-led resolution is supported by management).

We structure our engagement strategy around two complementary approaches: ‘engage for change’ and ‘engage for information’.

Q1 2026 Engagement Approach (in %)

Within this framework, Carmignac’s engagement activities can be broken down into the following five areas: ESG ratings, thematic engagement, public policy, engagement on controversial behaviour, and engagement related to proxy voting decisions.

In Q1 2026, we initiated 18 engagements with investee companies across four types of engagement covering a full spectrum of ESG topics. Engagements may be relevant to more than one category at the same time.

Q1 2026 Engagement Activity (in %)
Percentages have been rounded for presentation purposes; as a result, totals may not equal 100%.

The proportion of our engagements which had ESG relevance in Q1 2026 was as follows.

Q1 2026 Engagement Topics (in %)

In Q1 2026, Carmignac mostly engaged with investee companies on Climate change and human capital topics:

Q1 2026 Thematic Type (in %)
Percentages have been rounded for presentation purposes; as a result, totals may not equal 100%.

We engaged with our investee companies in a variety of ways, including direct engagement and as part of a group.

Q1 2026 Engagement Method (in %)

In Q1 2026, Carmignac achieved a 100% participation rate, voting at all 84 eligible meetings.

Carmignac also voted on 14 shareholder proposals and against management on at least one resolution at 45% of meetings.

Meetings voted for/against management (in %)

In Q1 2026, Carmignac’s voting activity was diversified across markets, with the highest share of meetings voted in the United States, followed by South Korea, and India.

Meetings Voted by Market (in %)
Percentages have been rounded for presentation purposes; as a result, totals may not equal 100%.

Below we outline how we specifically engaged with one of our investee companies in Q1 2026.

LG Chem

Sector: Chemicals
Region: Asia

Carmignac is an equity investor in the company across several emerging market funds1.

Carmignac has engaged with the company for several years to drive improvements in corporate governance and capital allocation, which are key factors to address the company’s persistent valuation discount.

Carmignac maintains an ongoing dialogue with the company through meetings, calls, emails and letters. Engagement has progressively escalated from regular discussions with investor relations to direct outreach to senior management, including a formal letter to the Board, voting against management at the 2022 AGM, and, more recently, a public statement supporting shareholder resolutions.

Carmignac is a long-term shareholder of the company and has progressively escalated its engagement:

  • 2020–2021: Following the decision to spin off and list its battery business (LG Energy Solution), Carmignac raised early concerns that the transaction would disadvantage minority shareholders. These concerns were initially communicated through direct calls with investor relations and later escalated in June 2021 via an email from the investment team to the CEO.
  • 2022: After the IPO of LG Energy Solution proceeded, Carmignac remained concerned about value destruction for minority shareholders. In line with our Engagement Policy, Carmignac escalated our approach by voting against the renewal of the CEO’s mandate at the March 2022 AGM and sending a formal letter to the Board explaining the rationale. This marked a significant step in signalling concerns about the company’s governance practices.
  • 2024-2025: We continued our engagement with the company. Discussions covered governance issues such as board composition, capital allocation, executive compensation, and employee relations.
  • 2026: Ahead of the March 2026 AGM, Carmignac took the rare step of publicly announcing its support for all resolutions proposed by Palliser Capital. This represents a further escalation, reflecting ongoing concerns that, despite Korea’s “Value-Up” reforms, the company continues to trade at a persistent valuation discount relative to peers and that additional governance improvements are needed.

Carmignac’s engagement combines a constructive but escalating approach through successive steps over several years and different engagement methods. Carmignac has sent clear signals to the management and Board regarding investor expectations and will continue to engage with the company to monitor progress on governance and capital allocation improvements to ensure the company takes meaningful steps to address its valuation discount.

1As of 31/03/2026, FP Carmignac Emerging Markets, Carmignac Portfolio Emerging Patrimoine, Carmignac Emergents and Carmignac Portfolio Emergents.

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