From Climate Top100 Engagement to Climate Top1000+
After the disappointing political results of COP26, institutional investors and the companies they are investing in have to do even more by their own to secure a net-zero world in 2050.
Read MoreHow to engage on climate Net Zero
Since the Paris Agreement was signed in 2016, Engagement International has been engaging on behalf of institutional investor clients with the 100 listed companies that are most exposed to climate change, when it comes to the highest scope 1 and 2 emissions or potential emissions from fossil fuel reserves.
Read More10 key points in the new Net Zero Investor Frameworks
Climate change has become the most important ESG issue for institutional investors, corporations, cities, and nations. And “Net Zero” is the new narrative to describe the ambition of being aligned with the Paris Agreement or 1.5-degree goal. All around the world, thousands of organizations are committing themselves to achieve the state of “Net Zero in 2050 or sooner”, where they achieve an overall balance between emissions produced and emissions taken out of the atmosphere.
Read MoreTax havens and corporate responsibility
Should companies’ use of tax havens and aggressive tax planning be considered as a question of policy, law or corporate responsibility, also called CSR or ESG? It is one of the questions now highlighted by the COVID-19 crisis.
Read MoreTime for Responsible Corporate Tax
The COVID-19 crisis may become the “tipping point” that makes tax havens and aggressive tax avoidance as controversial as bribery and corruption.
Read More
Climate Series: Engaging with the Top 100 Climate Change Contributors
On behalf of institutional investor clients, Engagement International has evaluated and engaged with the 100 listed companies that contribute the most to climate change since the Paris Agreement was adopted in December 2015. Through in-person meetings and conference calls every six months over the past three years, we seek to encourage the companies to align their business with the well-below two-degree goal. This blog is the first of a climate series, in which we will discuss the premise and results of the engagement project “Top 100 Climate Change Contributors” (Top100CCC).
Read MoreHow investors equip themselves against climate change
How should pension funds and other asset owners act to comply with the TCFD recommendations on climate disclosure? Read the latest article in Økonomisk Ugebrev (in Danish).
Impact investment causes warning light to flash
Great to see the strong growth in impact investing related to the 17 Sustainability goals. However, a few red warning lights should be noticed, writes Engagement International CEO, Erik Alhøj, in a new article in Økonomisk Ugebrev (in Danish).
Blockchain strengthens responsible investments
The blockchain technology creates new responsible investment opportunities. Read more about the most important in a new Økonomisk Ugebrev article (in Danish).
Corporate bonds and engagement potential
ESG Engagement is mostly used for responsible investment in listed equities. However, according to a new report from PRI, engagement can also be beneficial, when it comes to corporate bonds. Read more in the latest Økonomisk Ugebrev article (in Danish).
Significant CO2 reduction in Top 100 Climate companies
Read about the main results of the engagement Engagement International has conducted with the 100 listed companies that are contributing the most to climate change in a new article in Økonomisk Ugebrev (in Danish).
Eight proposals for a financially sustainable EU
Read about eight significant recommendations for creating a sustainable European financial sector in an Økonomisk Ugebrev article (in Danish).
2018: The 10 most important ESG initiatives and trends
What are the 10 most important trends and initiatives regarding ESG, active ownership and responsible investment? Get the overview from a new article in Økonomisk Ugebrev (in Danish).
Strong ESG management creates financial value
Companies with higher ESG ratings tend to show improved financial performance, according to a new report from MSCI ESG Research. Read about the main conclusions in a new Økonomisk Ugebrev article (in Danish).
New Danish Guidelines for responsible investment
In a new guideline, the Danish Government is encouraging investors to act as active and responsible owners, following the OECD’s Responsible Business Conduct for Institutional Investors. Read the article in Økonomisk Ugebrev (in Danish).
The cost of ESG exclusion
Exclusion of more than a handful of companies due to ESG incidents has a negative impact on the risk-adjusted financial return, according to the analysis from MSCI ESG Research. Read the article about the main results in Økonomisk Ugebrev (in Danish).
Scenarios will be part of future reporting
Scenario analysis is on its way to replace some of the more historical based financial reporting. Read how in an article in Økonomisk Ugebrev (in Danish).
Critical conclusions on CSR reporting among Danish companies
FSR – Danish Auditors – is not fully updated in a new critical survey on CSR reporting from Danish listed companies. Read about it in a new article in Økonomisk Ugebrev (in Danish)
Five reasons for responsible investment
In a new PRI report “The SDG Investment Case” lines up the five main reasons for linking investment with the 17 Sustainable Development Goals. Read about it in a new Danish article in Økonomisk Ugebrev.
Responsible investment has become mainstream in Denmark
96% of the 50 largest institutional investors in Denmark now have a set-up for responsible investment compared to 88% in 2015. Active ownership or engagement is an essential element for two-thirds of these investors, according to a new study from the Dansif, the association of responsible investors in Denmark.
Read MoreWhat are the most popular Sustainable Development Goals?
Jobs and Economic Growth, Health and Gender Equality are the most popular Social Development Goals, according to a new Progression Report from UNGC. Read more in Økonomisk Ugebrev article.
Investors can no longer afford to ignore ESG
Responsible Investment pays off according to three independent new analysis from Nordea, MSCI and Financial Time. Read about the conclusions in Økonomisk Ugebrev.
Oil sales: Maersk forgot the climate perspective
Total has acquired Maersk Oil. Read about the climate perspectives in Økonomisk Ugebrev.
25 largest climate sinners
Read about the 25 largest climate sinners since 1988 and their (lack of) willingness to support the Paris Agreement, according to Engagement International’s dialogue with the companies. Article in Danish Økonomisk Ugebrev.
Climate adaptation continues despite the message from US
The business transition towards a low-carbon economy will continue despite the Trump-government withdrawal from the Paris Climate agreement. Read about the main consequences in Økonomisk Ugebrev.
Investors demand clarity from oil and gas companies regarding climate change
During the latest weeks there has been a historical shareholder ‘rebellion’ against oil and gas giants due to their unclear strategies regarding climate change. Read more in an article in Økonomisk Ugebrev.
Pension funds pushed to new OECD recommendations
Pension funds are encouraged by NGO’s to follow OECD Guidelines for responsible investment. A new report shows how it can be done. Read more in an article in Økonomisk Ugebrev.
Unclear regulations hinder integration of ESG factors into investments
Unclear public regulation is a barrier for responsible investment, according to OECD in a new report. Read more in an article in Økonomisk Ugebrev.
Decline in shareholder democracy
While the Danish and European authorities are pushing institutional investors to be more active and responsible owners of companies they are investing in by voting at the general meetings, among others. It is quite the opposite in the United States. Read more in the Økonomisk Ugebrev article.
Active and responsible ownership through proxy voting
While Danish institutional investors are preparing for new recommendations to become more active owners, active ownership in the US has entered a new phase. Here institutional investors are pushing each other to be more active and responsible owners through proxy voting. Read more in a new Økonomisk Ugebrev article.
EU encourages active and responsible ownership
Just before Easter, the European Union finally adopted the Shareholders’ Rights Directive that is encouraging institutional investors to behave more as active and responsible owners. After ten years of dispute, the European Council followed the EU Commission and Parliament and gave its green light for the comprehensive directive that applies to more than 8.000 listed companies. The member states have now up to two years to transpose the new provision into domestic law.
Read MoreOverpaid CEOs underperform financially
Extremely high payments to CEOs are often explained by the “fact” that they get “peanuts” compared to the much higher financial value they are creating for shareholders. In Denmark, it has recently been the answer to the many critics of the IPO of Nets, which resulted in a gain of nearly USD 100 million for the CEO. And the answer was similar when it was known that America’s new foreign minister, Rex Tillerson, raised an annual compensation of USD 27 million as CEO of Exxon Mobil and an even greater amount when he said goodbye to the oil company. However, two independent studies based on the US data prove that the truth is rather the opposite.
Read MoreClimate Engagement leads to better Management
During the last months of 2016, Engagement International engaged on behalf of institutional investors with 28 of the 100 listed global companies that are contributing the most to climate change – now or potentially later, due to their fossil fuel reserves. About 40% of the companies have a clear commitment to the Paris Agreement and are explicit about their own responsibility to contribute to the two-degree-goal. However, in general, the highly exposed energy-, mining-, steel- and cement companies need to do much more. Two thirds have shown an increasing carbon emission intensity over the last five years. And a new set of very ambitious financial disclosure recommendations from the Financial Stability Board (FSB) will push not only these highly climate change exposed companies, but organisations in all industries to adopt a better management of their climate risks and opportunities.
Read MoreStrong growth in seven archetypes of responsible investments
The amount of responsible investments in Europe and the US has grown significantly the past two years and strategies are getting still more sophisticated. It began more than 250 years ago with religiously inspired exclusions of companies that could be associated with alcohol, tobacco, weapons etc. This first generation approach is still the most dominating strategy according to new surveys from Eurosif, US SIF and PRI. However, in Europe engagement and voting have grown more than 30% the last two years.
Read MoreNew Stewardship Code for Danish institutional investors
From 2017, Danish institutional investors are supposed to follow a new stewardship code holding seven recommendations on active ownership. The code, drafted by the Committee for Good Corporate Governance at the initiative of the Minister of Business and Growth, has been through a public hearing in September. After adjustments, the final version is planned to be published in December this year.
Read MoreDenmark’s fall from the anti-corruption throne
There are many indications that Denmark now must relinquish its position as the country with the least corrupt public sector, according to Transparency International. Danish Police has arrested nearly 50 current and former public servants and accused them for being bribed with smartphones, computers and other electronic equipment from the IT vendor Atea. The case is the largest of its kind in Denmark and embarrassing, especially because the persons arrested work for the National Police, the Armed Forces, the Military Intelligence Services, the Public Prosecutor’s Office, the Ministry of Foreign Affairs and the City of Copenhagen.
Read More