Socially Responsible Investment (also referred to as sustainable or
ethical investment) is a form of investing which takes not only the
traditional financial indicators into account but also the impact of
company’s governance and business activities on people, the environment
and the wider economy.A carefully executed policy in respect of sustainable management is an essential condition to create value for investors. The companies
that excel in the long term are those that not only know how to avoid
sustainability risks successfully but can also spot opportunities and
benefit from them.
a) Screening (inclusion and exclusion) In
addition to engagement and voting, the screening of investment
portfolios can form a part of the policy governing Responsible
Investment.
In
many cases, investment portfolios are screened against negative
criteria. Generally, consideration is given to which products and
processes contravene national (or international) agreements and
treaties. Subsequently companies that have any involvement with these products and processes can be excluded from the investment universe. However, screening can also mean identifying companies that have positively distinguished themselves in respect of certain themes deemed important by theclients.
Positive screening involves seeking out companies that provide products
or services that support sustainable development or are aligned with
external targets such as the UN Millennium Development Goals or global
targets to reduce greenhouse gas emissions linked to climate change.
Investment in these themes can then be stimulated by allocating a certain part of the investment capital to them.
b) Engagement Engagement means entering into a constructive dialogue with companies
about subjects such as the environment, society and corporate
governance; a dialogue in which not only the risks and negative effects
are discussed but one in which by way of cooperation consideration is
given to the opportunities offered by changing (economic) conditions. The objective is to secure shareholder value in the long term.In
addition to interaction with corporations, engagement also includes
constructive dialogue with policy makers, regulators, industry bodies
and civil society.
c) Voting Another way in which pension funds can actively influence the companies in which they invest is by exercising their right to vote during shareholders’ meetings. Voting
should be based on a number of international standards, which can take
on different forms in different regions. The intended result is the
maintenance and enhancement of shareholder value by combining
managerial accountability with transparent reporting.
Lees en reageer op nieuws van het Nedlloyd Pensioenfonds, kom in contact met (oud-)collega’s, plaats en lees oproepen en berichten m.b.t. pensioenaangelegenheden en Nedlloyd en rechtsvoorganger.
English Summary 