Credible engagement to foster sustainable transformation
Along with Bank für Kirche und Caritas and Union Investment, we are proud to publish the joint statement “Key Points on Credible Engagement to Foster the Sustainable Transformation”.
We understand engagement as the active exertion of influence by capital investors through the exercise of voting rights and dialogue strategies with the clear goal of encouraging companies, states and other investment objects towards more sustainable economic activity. In the world of sustainable investing, engagement has nowadays become a pivotal component alongside other investment strategies.
We firmly believe engagement can trigger changes towards sustainable development in the real world. Yet whether and how it is practised has so far been the responsibility of each financial market participant. We recognize the imperative need to work towards a common industry standard for credible engagement. For this reason, along with Bank für Kirche und Caritas (BKC) and Union Investment we are working together to define such a standard. Our eight key points can form a basis for a constructive discussion.
Within these key points, we outline how engagement can support a sustainable transformation. Elements such as measures, timelines, interim targets and escalation levels, among other things, must be recorded. The achievement of objectives must be just as realistic as the planned duration of the process. Transparency must be the basis for trustworthy and effective engagement. In addition, standards and procedures to evaluate the sustainability impact of engagement activities need to be developed in order to establish them as an integral component of sustainable investment strategies.
These principles are intended to provide orientation for both market players and the public interested in sustainability, but also as valuable suggestions for financial market participants in their engagement activities.
You can read the key points here: Credible engagement to foster the sustainable transformation.