Talking for better results
Engaging with companies on their ESG performance is an important tool for furthering sustainability. Last year, we engaged with more than 800 companies, on subjects ranging from CO2 emissions to privacy issues.
Protection of human rights
We discuss a “just transition” with companies from different sectors, ranging from car manufacturers and energy companies to food producers. For a sustainable transition, we look specifically at how human rights are protected in companies. For example, we want to know how they verify that the supplier of raw materials does not use child labour. And whether the company enters into discussions with suppliers to improve working conditions. And what does the company do to prevent the pollution of the living environment of the people where its raw materials come from?
Agriculture also has a major impact on the climate and biodiversity. One solution is regenerative agriculture, in which the soil is used in such a way that biodiversity and ecosystems are restored and climate change is counteracted. But a true regenerative strategy also tackles social problems, such as the rights of indigenous peoples, land theft and the working conditions of farm workers.
"The more invested capital, the more influence we can have."
Some companies are coming up with concrete plans. For example, PepsiCo plans to use regenerative agriculture on nearly 3 million hectares by 2030, saving at least 3 million tonnes of CO2 and improving the lives of 250,000 people. And Nestlé will invest over EUR 1.2 billion in regenerative agriculture in its supply chain by 2025. With this, Nestlé is committed to a just transition.
Goals and follow-up
Concrete goals are set for the selected companies. We then have a continuous dialogue with these companies to measure their progress. It often takes two to five years before a company achieves its goals.
When selecting companies, we look at how much we and the other parties have invested in a company. The more invested capital, the more influence we can have. That is one of the reasons why, for our engagements, we work with a service provider, EOS by Federated Hermes, which enters into discussions with companies on our behalf and on behalf of other parties. By working together, we can engage with more companies and achieve more. In 2021, we will have spoken to more than 845 companies. And that is necessary, because despite the fact that more and more companies are taking responsibility, a lot still needs to be done.
Karin Bouwmeester
Senior ESG Manager