2020-2030

Engagement voor een positieve impact

De toekomst van engagement

Doordat verantwoord beleggen tot de mainstream begint te behoren, is de focus van engagementsacties gaan liggen op het overtuigen van ondernemingen dat een sterk ESG-beheer gunstig is voor hun rendement op de lange termijn. Wij vinden dat engagement zich in het komende decennium moet richten op zowel financieel rendement als duurzaamheid.

Disclaimer

In het verleden behaalde resultaten bieden geen garantie voor de toekomst. De waarde van beleggingen kan fluctueren. Het is mogelijk dat beleggers hun inleg niet (volledig) terugkrijgen.

Engagement met een focus op de SDG’s

Emma Lupton, Senior Associate in ons Responsible Investment Team, praat over onze engagementplannen voor de toekomst, met een specifieke focus op de SDGs.

 

Het meten van impact

De Sustainable Development Goals (SDG’s) van de Verenigde Naties zijn een belangrijk referentiepunt dat wij en andere investeerders gebruiken om impact te meten. De SDG’sbestaan uit 17 doelstellingen, met 169 gedetailleerde targets en bijbehorende KPI’s, voor een duurzamere toekomst in 2030. Wij vinden dat de doelstellingen een nuttig instrument zijn voor bedrijven en beleggers die willen bijdragen aan de verwezenlijking van de doelstellingen voor 2030. Binnen dit kader spreken alle stakeholders dezelfde taal en dat heeft een positief effect op ons engagement.

Engagement in 2020

Ontdek onze engagementgegevens voor 2020 en hoe deze gekoppeld zijn aan de SDG-doelstellingen. Beweeg over de onderstaande percentages om meer te weten te komen over de specifieke doelen en doelstellingen van onze engagements

Familly iconECG chart iconSex iconWater iconSun iconChart iconInfinity iconEarth iconTree iconPigeon iconOtherNo SDG
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SDG Goal 1 - No Poverty - End poverty in all its forms everywhere

In 2020, 5% of our engagement linked to SDG goal 1

2020 was a catastrophic year for many retailers. However, the knock-on effects were not uniform. Economic fortunes for different retailers varied, but labour standards came into focus across all areas of the sector. We expanded our engagement with retailers in 2020 beyond the Living Wage to include broader social themes during the pandemic.
Read: ESG Viewpoint: living wage in the retail sector
SDG targets within the denoted goal that are less than 0.5%
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SDG Goal 3 - Good Health and Well-Being - Ensure healthy lives and promote well-being for all at all ages

In 2020, 3% of our engagement linked to SDG goal 3

India’s vast untapped market for healthcare and financial services offers significant growth prospects for companies looking to serve it. We believe that beyond reaping the financial benefits of increasing revenues, companies can and should play an active role in improving people’s livelihoods by making these services affordable and inclusive.
Read: ESG Viewpoint: Access for Growth in India
Antimicrobial resistance is a natural phenomenon being accelerated due to poor stewardship of antibiotics in healthcare and farming. We engaged pharmaceutical companies, food producers and food retailers on their approach to AMR issues. We will continue to benchmark best practices and encourage more robust commitments on addressing AMR.
Read: AMR in the Pharmaceutical and food industry
SDG targets within the denoted goal that are less than 0.5%
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SDG Goal 5 - Gender Equality - Achieve gender equality and empower all women and girls

In 2020, 8% of our engagement linked to SDG goal 5

Workforce disclosure is essential for investors to better analyse companies’ social performance. Companies’ workforce disclosure is still limited, often referencing data gaps or lack of appropriate data gathering systems. BMO Global Asset Management encourages companies to respond to the Workforce Disclosure Initiative (WDI) annual survey to underline accountability to their social commitments
Read: ESG Viewpoint: The quest for workforce disclosure
We engaged Germany’s largest listed companies on the lack of female representation at senior leadership levels. Find out the results and responses from those companies.
Read: Gender diversity – are German companies keeping up?
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SDG Goal 6 - Clean Water and Sanitation - Ensure availability and sustainable management of water and sanitation for all>

In 2020, 2% of our engagement linked to SDG goal 6

Achieve universal access to safe and affordable drinking water (SDG 6.1)
A healthy marine environment is critical to the health of the planet and its inhabitants. Currently only 2-6% of our oceans are classified as Marine Protected Areas (MPAs), and it is estimated that we need 30% protected to ensure a thriving ocean ecosystem. In addition to the social and environmental benefits, around $2.5tn of economic value is generated annually by the oceans. Read more about how our Responsible Investment team engage with companies on these issues.
Read: Focus on ocean health
SDG targets within the denoted goal that are less than 0.5%
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SDG Goal 7 - Affordable and Clean Energy - Ensure access to affordable, reliable, sustainable and modern energy for all

In 2020, 5% of our engagement linked to SDG goal 7

BMO GAM itself has committed to an ambition of net zero emissions in our investments by 2050, as part of the Net Zero Asset Managers Initiative. As part of our stewardship approach, we have been working with other investors to urge companies to align with these goals. However, dialogue alone is not enough, particularly where companies are not meeting even basic expectations or are resistant to engagement.
Read: ESG Viewpoint – Voting for climate action
SDG targets within the denoted goal that are less than 0.5%
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SDG Goal 8 - Decent Work and Economic Growth - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

In 2020, 19% of our engagement linked to SDG goal 8

Technological advances have been the most significant driver of economic development over the last 200 years, with each industrial age transforming the way people live and work. But the depth and scale of labour displacement from A.I. automation could be much greater than previous industrial revolutions. Discover how artificial intelligence and automation could impact the future of work.
Read: ESG Viewpoint: Artificial Intelligence, Automation and the Future of Work
We engage around social issues consistently to ensure the application of labour management policies that provide a diverse, non-discriminatory and safe workplace, where workers are treated well and paid fairly. We encourage transparency and accountability within supply chains and direct operations to ensure best practice.
Read: ESG Viewpoint – Racial justice: the imperative for investor action
Our engagement in 2018 focused on companies required to publish modern slavery statements in line with the UK’s landmark Modern Slavery Act 2015. Since the introduction of this Act, modern slavery legislation has progressed in a number of countries, including Australia, Canada, France, and the Netherlands.
Read: ESG Viewpoint: Modern Slavery: Engagement Update
Labour issues are likely the biggest corporate theme resulting from the pandemic, with the impact on workers not been felt evenly. The implications for worker welfare differ significantly depending on the sector, the jurisdiction, and the nature of jobs. In 2020 we began engaging companies on their response to the global pandemic, calling for measures related to health & safety and the provision of mental health support, among others.
Read: COVID-19 and labour-related impacts
SDG targets within the denoted goal that are less than 0.5%
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SDG Goal 12 - Responsible Consumption and Production - Ensure sustainable consumption and production patterns

In 2020, 12% of our engagement linked to SDG goal 12

We engage with companies on the circular economy, the use of innovative materials, adopting product lifecycle assessments, improving recycling along the entire supply chain, and educating consumers on product use and disposal.
Read: Is the circular economy treading water?
In April 2018, the EU Member States endorsed the EU Commission’s proposals to ban all outdoor uses of three neonicotinoids (“neonics”). Since then, we have reviewed our engagement on chemical safety and biodiversity risk with ten agrochemical companies to see how they are responding to the new rules.
Read: ESG Viewpoint: Chemicals and biodiversity
2018 saw a significant focus on the issue of ocean plastics, spurred by the airing of Sir David Attenborough’s seminal documentary Blue Planet II and the awareness that more than 8mn tonnes of plastic reaches the oceans annually.
Read: Ocean plastics and the impact on the environment
The economic turmoil and social upheaval from the pandemic has put sustainability challenges at the heart of the global agenda. As investors, we must drive positive change through the responsible allocation of capital and engagement with companies. We have set out our three engagement priorities for 2021, focused on supporting a sustainable recovery from the pandemic and the 2030 target date for achieving the SDGs: the race to net zero, addressing biodiversity loss, and Supporting social justice and reducing inequality.
Read: Supporting a sustainable Covid-19 recovery through ESG engagement
SDG targets within the denoted goal that are less than 0.5%
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SDG Goal 13 - Climate Action - Take urgent action to combat climate change and its impacts

In 2020, 16% of our engagement linked to SDG goal 13

With a growing number of governments setting paths to net zero emissions, the future of coal is in question. It’s estimated that coal use would have to drop by 60% by 2030 to achieve a net zero future. Through our engagement, we seek to encourage companies with exposure to coal to be proactive in how they will manage the transition and avoid the risks of stranded assets.
Read: ESG Viewpoint: Coal's uncertain future
BMO GAM itself has committed to an ambition of net zero emissions in our investments by 2050, as part of the Net Zero Asset Managers Initiative. As part of our stewardship approach, we have been working with other investors to urge companies to align with these goals. However, dialogue alone is not enough, particularly where companies are not meeting even basic expectations or are resistant to engagement.
Read: ESG Viewpoint – Voting for climate action
Indonesia is one of the world’s biggest emitters of greenhouse gases, driven by deforestation and land-use change. With palm oil, rubber, sugar and coal being vital to the country’s economic growth and trade balance, calls to address the climate impacts of their production and use face significant hurdles. Meanwhile, the intense monsoons and rain of January 2020, which left tens of thousands of people displaced, were a stark reminder of the country’s vulnerability to climate risks.
Read: ESG Viewpoint: Are Indonesian companies waking up to climate risk?
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SDG Goal 15 - Life on Land - Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

In 2020, 2% of our engagement linked to SDG goal 15

Ensure sustainable usage of terrestrial freshwater ecosystems (SDG 15.1)
Palm oil production has serious social and environmental impacts. We consider how the Roundtable on Sustainable Palm Oil is addressing these issues.
Read: Can palm oil ever be sustainable?
SDG targets within the denoted goal that are less than 0.5%
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SDG Goal 16 - Peace, Justice and Strong Institutions - Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

In 2020, 3% of our engagement linked to SDG goal 16

With the rapidly-developing situation, we are still in the early stages of understanding the impact that COVID-19 will have. However, some important implications for corporate governance practices and standards are already emerging.
Read: Corporate governance implications of the COVID-19 pandemic
Engaging with companies is an important way for investors to drive positive change at the corporate level. However, one-on-one engagement sometimes fails, and it becomes necessary to escalate our engagement strategy - from collaboration to filing shareholder resolutions.
Read: Investor engagement - routes to escalation
SDGs less than 2%.

2. Zero Hunger, 9. Industry, Innovation and Infrastructure, 10. Reduced Inequalities, 11.Sustainable Cities and Communities, 14. Life Below Water

The remaining 21% of our engagement focused on corporate governance, which we view as an essential building block in creating a more sustainable economy

21% of our engagement does not have a direct link to a specific SDG target. The majority of these engagement activities are on corporate governance, which we view as an essential building block in creating more sustainable, better run companies. The main exception is our engagement on board diversity, much of which has covered gender diversity issues, which we see as supportive of SDG 5 and targets 5.1 and 5.5 in particular, but has a wider application to the achievement of other goals such as SDG 8 and SDG 10.

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“Het ESG-debat gaat inmiddels over veel meer dan louter risico’s en kansen. De fundamentelere vraag is nu welke rol de financiële sector kan spelen om tot een eerlijkere en duurzamer samenleving te komen.”

Vicki Bakhshi, Analist, Responsible Investment team

Samenwerken om het systeem te veranderen

De perspectieven op stewardship verschuiven naar een meer holistische kijk op onze verantwoordelijkheden voor de vormgeving van de markt en de economie als geheel. Dit betreft bijvoorbeeld klimaatverandering, gezondheid van de oceanen, biodiversiteit en volksgezondheid. Dit impliceert een scherpere focus op het overheidsbeleid en het opbouwen van relaties met andere belanghebbenden, waaronder NGO’s en academische deskundigen.

Beleggerswereldwijd schakelen naar een hogere versnelling

In het afgelopen decennium werd engagement bijna uitsluitend geleid door beleggers uit de ontwikkelde landen, voornamelijk in Europa en de VS.Gezien de toenemende invoering van regelgeving, richtlijnen en praktijken met betrekking tot verantwoord beleggen verwachten wij dat actief aandeelhouderschap in het komende decennium ook in andere markten veel hoger op de agenda van de lokale beleggers zal komen te staan.

Decennium van klimaatactie

Dit decennium is van vitaal belang voor het bereiken van de doelstelling van het Akkoord van Parijs om de opwarming van de aarde tot ver onder 2°C te beperken. De betrokkenheid bij dit proces is aan het veranderen: samenwerking vindt plaats op een ongekende schaal via het Climate Action 100+ initiatief, waarbij beleggers steeds vaker hun ongenoegen uiten door tegen managementresoluties te stemmen bij bedrijven die er niet in slagen de klimaatproblemen aan te pakken

Engagement op het gebied van klimaatverandering.

Vicki Bakhshi, Director in ons Responsible Investment Team, geeft haar visie op de toekomst van engagement op het gebied van klimaatverandering.

 

De 'S'-factor

De ‘S’ van ESG is historisch gezien moeilijk te definiëren en te kwantificeren. Maar de COVID-19 pandemie heeft de samenleving diepgaand beïnvloed en onze aannames over de manier waarop we leven aan het wankelen gebracht. Het heeft ook pijnlijke sociale en economische ongelijkheden aan het licht gebracht. Recente publieke opstanden tegen racisme na de dood van George Floyd hebben veel bedrijven ertoe gezet om hun diversiteitsbeleid te heroverwegen en te bekijken of dit toereikend is.

Tegen deze achtergrond behoren sociale kwesties nu tot de meest urgente thema’s voor bedrijven wereldwijd. Het is ook duidelijk geworden dat alle elementen van ESG fundamenteel met elkaar verbonden zijn en even belangrijk zijn. Het concept Just Transition (rechtvaardige transitie), waarbij wordt opgeroepen om bij de overgang naar een koolstofarme economie de levensstandaard van werknemers en gemeenschappen niet uit het oog te verliezen, is daar een mooi voorbeeld van.

Wij verwachten dat beleggers en gegevensleveranciers dit decennium manieren zullen vinden om sociale factoren beter te kunnen analyseren en integreren, en dus ook op sociaal vlak hun stem meer te laten horen. Daarbij zullen ze zorgvuldig te werk moeten gaan om het juiste evenwicht te vinden tussen de ‘E’ en ‘G’- aspecten. Het Workforce Disclosure Initiative, dat wij hebben gesteund, is een voorbeeld van hoe beleggers consistentere en betrouwbaardere ‘S-informatie’ kunnen genereren.

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Geschiedenis van engagement

2000-2010:

Lees meer over de lancering van de Principles of Responsible Investment van de VN (PRI) en hoe engagament mainstream werd.

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2010-2020:

Welke financiële, milieu- en sociale factoren leidden tot de snelle groei van verantwoord beleggen en het belang van engagement.

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