Page 12 - Riverwater 2020 Sustainability Report

2020 SUSTAINABILITY REPORT
SUSTAINABILITY IMPACT OF OUR INVESTMENTS: ENGAGEMENT EFFORTS
ENGAGING WITH SMALLER COMPANIES ON ESG EFFORTS
Given Riverwater’s primary focus on mid-, small-, and micro-cap investing, we act in a consultative manner to educate smaller companies on the benefits of attention to sustainability in their businesses to all stakeholders – including shareholders.
We encourage reporting on current practices, and improving, measuring, and reporting on progress toward attainment of future sustainability goals.
Riverwater engaged with 37 companies in 2020. Engagements include sharing tools to sharpen focus and report on their ESG efforts. Ultimately, we invested in 13 of those companies. All of those companies have embraced a focus on sustainability, most with our guidance. Some highlights of our engagement efforts are below.
IRIDIUM (IRDM)
Dialogues from 2019 led Iridium to add a Sustainability page to its website and ultimate publication of its first Sustainability Report in 2021. Continued dialogue encouraged consideration of worker satisfaction and social efforts as well as reduction of environmental footprint.
VIRTU FINANCIAL (VRTU)
Following engagement with VIRTU regarding board diversity, women were added to Executive Leadership team and Board of Directors. In addition, several women at were publicly recognized by Virtu for receiving awards for their contributions to the financial services industry during 2020
HAMILTON THORNE (HTLZF)
Dialogues prompted the company to focus on ESG policies and procedures. Since then it has made 2 director changes, reevaluated executive and director compensation, consideration of stock ownership and ideas for waste reduction in packaging.
FARMER MAC (AGM)
Dialogues with management regarding ESG led to meeting with executives and a board member regarding ESG best practices. Company is expecting to begin reporting soon and has a clearer idea of how to prioritize its efforts.
STONEX (HNEX)
Initial dialogue with management led to their request for suggestions regarding best practices. During 4th quarter earnings call, management stated that they are beginning to focus on ESG issues.
WRAP TECHNOLOGIES (WRAP)
New Investor Relations executive reached out to Riverwater for guidance on incorporating an ESG lens into its business practices. After sending tools for implementation and reporting, dialogue continues.
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