ESG Engagement
Our ESG Engagement solutions encompass various approaches, enabling you as an investor client to actively participate in influencing portfolio companies on all material ESG issues associated with negative impacts.
We differentiate between reactive engagement, such as addressing current violations of human rights, and proactive engagement, which involves addressing negative climate impacts that are not adequately managed by the associated portfolio company.
Climate Net Zero Engagement
The Paris Agreement signed in 2015 demonstrates clear global consensus and commitment to limit temperature increase to 1.5 degree Celsius, to avoid irreversible damage by climate change.
To transition into this low-carbon future, systemic changes to our way of energy production and consumption are required. We support investors driving the companies they invest in to contribute to Net Zero emissions through the following engagement lenses:
Responsible Tax Engagement
Responsible tax is becoming increasingly important to investors, both as a compliance issue and an ESG issue. Legislation is tightening regarding the global corporate tax rate with both the Inflation Reduction Act (IRA) signed by US President Biden in August 2022 and the OECD-led global minimum corporate tax rate of 15% agreed upon by 139 jurisdictions worldwide. However, although it is expected that the new legislation will reduce the use of low-tax jurisdictions solely for tax-related purposes, many investors believe that corporate tax should be treated as an ESG issue like bribery and corruption.
Engagement International supports investors and other organisations, such as municipalities, to engage with tax laggards they are investing in and/or buying from.
Engagement on Other Issues
Investor clients may find their investment portfolios particularly exposed to an E, S, G or SDG issue, or their investment mandates may guide them to focus on selected issues other than climate and tax. In such cases, we can take a deep dive on that topic within our engagement process. The aim is to encourage the engaged company to step up its management efforts regarding the specific issue.
Advisory
Based on many years of experience, we can support advanced institutional investors with advice and guidance on complex ESG issues and dilemmas while also offering support to responsible investment beginners and smaller organisations lacking their own ESG staff through a range of advisory services.
Compliance with national and international guidelines on responsible investment and active ownership for asset owners and asset managers.
Better-informed investment decision-making with insights on ESG impacts, risks and opportunities associated with the companies you invest in.
Creating long-term financial value by encouraging companies to effectively mitigate their ESG risks and pursue ESG opportunities.
Earning the license to operate and trust from clients, employees, civil society, and other stakeholders in local and global markets.
Becoming part of the solution to the world’s sustainability challenges through the unique role of being an investor.