TPI in practice: Miller/Howard

Miller/Howard Investments, Inc. (Miller/Howard) is a boutique asset management firm based in New York with ~$3.4bn in AUM and over 30 years of experience in integrating ESG considerations into the dividend- and infrastructure-focused portfolios on behalf of their clients. This case study explains how Miller/Howard use TPI data in assessing company performance and making informed public equity decisions.

Serving the interests of our clients

We routinely assess the resiliency and profitability of the companies in which we invest and strive to work with companies when we identify (a) areas that could be sources of risk or opportunity, or (b) gaps in public-facing disclosures on topics that we believe are material and important.

As active investors, we consider a variety of issues, including climate change, governance and human rights. We believe it’s important to understand how a company is managing risks, opportunities, and planning for the long-term.

We work with companies, pushing them to be better corporate citizens and sustainable businesses. Engagement moves industry to better practices, increased disclosure, and heightened transparency.

Our efforts are based on our own fiduciary duty and loyalty to our clients to protect shareholder value and to protect the dividend.

Real world use

• Engagement: as active members in Climate Action 100+, we have engaged companies for several years as co-leads, as well as supporting investors on company engagements. As a co-lead for multiple years with one of these companies, we continue to keep the engagement moving, utilizing TPI benchmarking, keeping the company on track and accountable.
• Investment: we developed and use our own proprietary structured analysis to create profiles when researching companies for potential investment. Our ESG team works closely with the portfolio managers and considers information, such as TPI’s data, which we include among our considerations, as we believe it to be accurate and reliable, enabling us to make informed decisions. We view these considerations as an essential component to our risk management process.
• Company performance: we utilise TPI reports, along with the quantitative data from the benchmark, to assess various aspects of a company’s performance. We value this information and trust that the quality and comprehensive processes used by TPI provides us with an accurate picture of how a company is managing its operations – shining a spotlight on where a company needs to improve. We integrate these analyses into our engagements with companies, including highlighting areas in which the company and/or its peers are leading or lagging.

Benefits gained from using TPI data

Miller/Howard continues its engagement campaign with companies in the midstream energy sector, which is often challenging as we navigate the intricacies of this sub-sector in the oil and gas value chain. TPI includes information in its analysis of oil and gas distribution, which has been useful in our engagement with the midstream companies. We rely on the TPI benchmark to continue to hold companies accountable based on a comprehensive global framework. Outcomes include enhanced commitments to transparency, detailed and candid dialogues, and ensuring companies understand the issues and the areas in which improvement is most needed.