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Sustainable Investing Glossary

Enhanced engagement

Enhanced engagement is used to address concerns with companies regarding conduct that does not adhere to global norms. It typically involves a breach of the UN Global Compact or OECD guidelines on an environmental, social or governance (ESG) issue. Some recent cases of enhanced engagement have involved companies that are heavily polluting the environment, are embroiled in socially unacceptable issues such as the use of child labor, or are involved in corporate governance scandals like bribery or corruption.

An enhanced engagement program usually takes place over three years in which the company must meet certain pre-arranged targets for improvement. This could be steps taken to remove pollutive practices, the eradication of labor abuse in supply chains, or resolving exposure to corruption. Failure to do so will lead to the company being put on Robeco’s exclusion list. Exclusion is however used as a last resort, as in many cases companies under enhanced engagement successfully resolve the issue.

Introductory Guide to SDG Engagement Equities
Introductory Guide to SDG Engagement Equities
Robeco has long believed in engagement to improve the sustainability of companies.
27-05-2022 | Insight
Insurers weather the storm with net zero commitments
Insurers weather the storm with net zero commitments
Insurers are turning to net zero to solve their unique climate change challenges, says Robeco’s Head of Global Insurance Strategy, Ed Collinge.
25-05-2022 | Insight
The impact of deep energy retrofit costs on the real estate sector
The impact of deep energy retrofit costs on the real estate sector
The real estate sector is estimated to produce around 40% of annual global greenhouse gas (GHG) emissions.
24-05-2022 | Insight