Sustainability

In 2024, we continued our strategic exercise of voting rights via the climate policy of the proxy advisor ISS. The focus on established shareholder co-determination principles, supplemented by sustainability criteria and in particular the focus on climate risks, is reflected in our voting behavior. For example, greenhouse gas emissions, climate strategy and the general impact of the company's business activities on the climate are taken into account. The transparency requirements are based on the TCFD framework, among others.

We voted on around 4,600 resolutions at a total of 341 shareholder meetings. At around half of these meetings, we voted against the management recommendation or abstained on at least one resolution. In total, there were around 250 shareholder resolutions, of which we supported almost 70%.

These shareholder proposals covered various topics, with a focus on social and environmental issues. Examples of supported demands include reports on a climate transition plan for financing, reports on lobbying work, the disclosure of risks of misinformation by AI and the demand for the introduction of an independent Board Chairman.

In various cases, votes were cast against the election of directors if they did not adequately address the risks and opportunities of climate change or to promote a majority independent board.

Our decisions continue to reflect our commitment to sustainable corporate practices and the responsible handling of shareholder interests in the context of the current climate challenges.

2020

Since September 2020, we exercise share voting rights via the Climate Policy of the proxy advisor ISS. This policy follows established principles of shareholder participation, but also takes into account (where applicable) defined sustainability criteria, with a strong focus on climate risks in particular. For example, greenhouse gas emissions, the climate strategy and the general impact of the companies' business activities on the climate are taken into account. The transparency requirements are, amongst others, based on the TCFD framework.

By the end of 2020, we voted on a total of 261 different resolutions at 27 shareholder meetings. At nine of these meetings, we voted against the management recommendation for at least one resolution. We supported the majority of resolutions put forward by other shareholders (rather than by the management).

We supported shareholder resolutions calling for disclosure on climate targets, deforestation, diversity and inclusion. In other cases, we opposed the remuneration report because, for example, substantial bonuses were paid out even though staff numbers had been significantly reduced during the pandemic.

2021

We exercise share voting rights via the Climate Policy of the proxy advisor ISS. This policy follows established principles of shareholder participation, but also takes into account defined sustainability criteria, with a strong focus on climate risks in particular. For example, greenhouse gas emissions, the climate strategy and the general impact of companies' business activities on the climate are taken into account. The transparency requirements are, among others, based on the TCFD framework.

In 2021, we voted on a total of approximately 3,500 resolutions at more than 250 shareholder meetings. At half of these meetings, we voted against the management recommendation for at least one resolution. We supported more than 80% of resolutions brought forward by other shareholders (rather than by management).

For example, we supported shareholder resolutions calling for the following:

- Strengthening of shareholder rights, e.g. simplified convening of extraordinary general meetings
- Independent board chairman 
- Disclosure of climate targets, environmental impact, diversity, inclusion, etc.

In other cases, we rejected the remuneration report:

- Excessive remuneration for management or directors
- Variable remuneration based on short-term and/or subjective performance targets

In various cases, directors were voted against if they did not adequately address risks & opportunities relating to climate change or to promote a board that has an independent majority.

2022

We exercise share voting rights via the Climate Policy of the proxy advisor ISS. This policy follows established principles of shareholder participation, but also takes into account defined sustainability criteria, with a strong focus on climate risks in particular. For example, greenhouse gas emissions, climate strategy and, in general, the impact of companies' business activities on the climate are taken into account. The transparency requirements are based, among other things, on the TCFD framework.

In 2022, a total of around 4,300 resolutions were voted on at more than 300 shareholder meetings. At approximately half of the meetings, we voted against the management recommendation or abstained on at least one resolution. We supported more than 70% of the resolutions introduced by shareholders (rather than management).

For example, we supported shareholder resolutions that called for the following:

- Strengthening of shareholder rights, e.g. simplified convening of extraordinary shareholders' meetings
- Independent board chairman
- Publications regarding climate targets, environmental and health impacts, diversity, inclusion, etc.
- Adoption of banking financing policies consistent with the IEA's net-zero emissions scenario by 2050

We rejected the compensation report in other cases:

- Excessive compensation for management or directors
- Variable compensation based on short-term and/or subjective performance targets

In various cases, we voted against the election of directors when they did not adequately address climate change risks & opportunities or to promote a majority independent board.

2023

In 2023, we continued our strategic exercise of voting rights via the climate policy of the proxy advisor ISS. The focus on established shareholder co-determination principles, supplemented by sustainability criteria and in particular the focus on climate risks, is reflected in our voting behavior. For example, greenhouse gas emissions, climate strategy and the general impact of the company's business activities on the climate are taken into account. The transparency requirements are based on the TCFD framework, among others.

We voted on around 4,700 resolutions at a total of 362 shareholder meetings. At around half of these meetings, we voted against the management recommendation or abstained on at least one resolution. The votes on environmental issues showed the most frequent deviations from the management recommendation. In total, there were around 200 shareholder resolutions, of which we supported around 70%.

These shareholder proposals covered various topics, with a focus on social and environmental issues. Examples of supported demands include reports on a climate transition plan for financing, reports on lobbying work, the disclosure of risks of misinformation by AI and the demand for the introduction of an independent Board Chairman.

In various cases, votes were cast against the election of directors if they did not adequately address the risks and opportunities of climate change or to promote a majority independent board.

Our decisions continue to reflect our commitment to sustainable corporate practices and the responsible handling of shareholder interests in the context of the current climate challenges.

Over the course of 2024, we exerted our influence on companies whose standards with regard to environmental, social and corporate governance principles were, in our opinion, in need of improvement.

There was also a strong focus on encouraging companies to set ambitious targets and decarbonisation strategies to achieve net zero emissions by 2050. In doing so, we primarily sought to engage with companies through collaborative engagements.

As part of our collaborative engagements, we entered into dialog with 49 companies in the area of norm-based engagements in 2024. The topics covered were the environment, human rights and labor rights. Specifically, we engaged with companies on issues such as water pollution, biodiversity depletion, air pollution, gender discrimination and trade union rights.

In addition to the norm-based engagements, discussions were held with 50 other companies during 2024 regarding their targets and decarbonisation strategies for achieving net zero emissions by 2050, together with other international investors. The focus was on companies with high market capitalization and high greenhouse gas emissions.

2020

In the course of 2020, we exerted our influence on companies whose corporate governance standards we felt needed improvement. One financial services provider agreed with our proposals for a more appropriate economic and accounting treatment of investments and will now fully acquire and consolidate them.

We have also created the prerequisites to participate in so-called "collaborative engagements" of the UN PRI. These collaborative engagements offer us the opportunity to actively and purposefully enter into dialogue, together with other investors, with companies, policymakers and regulators in the interest of our investors in order to counteract abuses in the area of environmental, social and corporate governance (ESG).

Furthermore, as part of our ongoing dialog, we were able to convince three other asset managers to become signatories to the UN PRI. This emphasises their commitment to sustainable investing.

2021

In the course of 2021, we exerted our influence on companies whose standards with regard to environmental, social and corporate governance principles could be improved according to our assessment. In doing so, we sought exchange with the companies both bilaterally and together with other investors through so-called "collaborative engagements".

In bilateral exchanges, we entered into dialogue with 13 companies in 2021 and discussed various topics such as the reduction of CO₂ emissions, controversies in the area of competitive behaviour and the use of surveillance technology in the military sector.

As part of a collaborative engagement, we, together with other international investors, have held discussions with several companies active in the field of facial recognition technology. Aspects such as the accuracy of the technologies used including potential biases, the sources of the underlying database as well as a responsible screening of customers & applications were discussed. The aim of the engagement is to encourage these companies to disclose more information, increase their awareness of human rights impacts and adopt ethical practices.

Furthermore, we supported various investor statements during the year, including on a more ambitious climate policy by the international community and the reduction of greenhouse gas emissions in the agricultural sector.

2022

In the course of 20212, we exerted our influence on companies whose standards with regard to environmental, social and corporate governance principles could be improved in our opinion. We sought to engage with companies both bilaterally and together with other investors through collaborative engagements.

In bilateral exchanges, we entered into dialog with 16 companies in 2022 and discussed various topics such as setting more ambitious targets for the reduction of greenhouse gas emissions, independence of the supervisory board and improving worker safety.

As part of a collaborative engagement already launched back in 2021, we, together with other international investors, held further discussions with several companies active in the field of facial recognition technology. Aspects such as the accuracy of the technologies used including potential biases, the sources of the underlying database as well as a responsible review of customers & applications were discussed. The goal of the engagement is to get these companies to disclose more information, increase their awareness of human rights impacts, and adopt ethical practices. A report regarding the first phase of the engagement was published in October 22.

Furthermore, during the year we supported an investor statement on the adoption of an ambitious Global Biodiversity Framework (GBF) at the UN Convention on Biological Diversity (COP 15).

2023

Over the course of 2023, we exerted our influence on companies whose standards with regard to environmental, social and corporate governance principles were, in our opinion, in need of improvement.

There was also a strong focus on encouraging companies to set ambitious targets and decarbonization strategies to achieve net zero emissions by 2050. In doing so, we primarily sought to engage with companies through collaborative engagements.

As part of our collaborative engagements, we entered into dialog with 14 companies in the area of norm-based engagements in 2023. The topics covered were the environment, human rights and labor rights. Specifically, we engaged with companies on issues such as water pollution, air pollution, gender discrimination, trade union rights and biodiversity.

In addition to the norm-based engagements, discussions were held with 23 other companies during 2023 regarding their targets and decarbonization strategies for achieving net zero emissions by 2050, together with other international investors. The focus was on companies with high market capitalization and high greenhouse gas emissions.