Shareholder Activism 2019

Company engagement activities planned for 2019 reflect the themes already developed in 2018. They are consistent with UN Sustainable Development Goals (SDGs), the action programme subscribed to by the governments of the 193 member countries of the United Nations to promote sustainable economic, social and environmental development, and cover a number of specific areas.

The main strategic areas of dialogue

The main strategic areas of dialogue with companies, to be maintained over the medium to long term, are as follows:

  • Climate Change: development of environmental policies and emission reporting, introduction of emission reduction targets and projects working towards a low carbon economy, assessment of the hydrogeological risk of plant and installations and, in relation to palm oil, monitoring of the supply chain and crops.
  • Water Resource Management: efficient use of water, consumption reporting and water reduction targets.
  • Biodiversity: reporting on the impact of deforestation, formal commitments and targets for reducing plastic pollution, reducing the use of pesticides
  • Respect for Human Rights:  both in relation to the dignity of work, and respect along the supply chain, in connection with responsible recruitment policies and controls and supplier audit reports.
  • Taxation: development of a tax policy, transparency when publishing related data.

In addition to the themes already developed in these areas, more are being developed primarily with companies in the new Etica Impatto Clima fund, which focuses on the theme of climate change and development of a low-carbon economy. These areas relate to:

  • A just transition towards a low-impact economy in terms of polluting emissions which also takes into account the social consequences
  • A commitment to reduce plastic pollution
  • Green bonds and due diligence, i.e. mechanisms for reporting the use of the proceeds of green bonds, mainly in relation to issuers in the financial sector

 Specific themes

In relation to specific companies or sectors, we intend to engage in a dialogue with companies on the following:

  • Disputes
  • Education
  • Sustainability governance
  • Infrastructure
  • Nutrition
  • Health Care
  • IT Security

Why?

Etica Sgr, which has always been committed to sustainable and responsible investment, and considers engagement to be a fundamental and strategic element of its business. Engagement is not limited to a single moment during the shareholders’ meeting when voting rights are exercised, but rather it develops throughout the year in an ongoing dialogue.
Above all, action is aimed at stimulating thought and action on environmental, social and governance aspects, and we are therefore looking for ways to improve with the companies we are engaging with. Especially at a time such as the present, when the onus is on governments, businesses and individuals to do more to achieve sustainable development.

 

 

Before subscribing, please read the KIDs and Prospectus available from placing agents.

The placement of the “Linea Valori Responsabili” and “Linea Futuri Sostenibili” funds is only available in Italy. For further information, please refer to the Italian version of the website.