Engagement to combat global warming leads Q2 Active Ownership report

The report also contains updates on the pursuit of good corporate governance and the ongoing thorny issue of executive pay, following up from the Spring proxy voting season at annual general meetings. A round-up of engagements with policymakers in the first half completes the briefing.

The team begins with an update of engagement with the newly elected Indonesian government on a range of climate issues, including a long-running dialog over preventing deforestation in the country’s key palm oil industry.

In February 2025, Robeco co-led a field trip to Jakarta with the Investor Policy Dialogue on Deforestation (IPDD) to discuss policy alignment with net-zero targets, sustainable finance and other issues with Indonesian government agencies and stakeholders.

“Key topics included the green taxonomy, nature-related financial disclosures and the role of domestic banks in preventing deforestation,” says Senior Engagement Specialist, Laura Bosch Ferreté. “As Indonesia’s new government reassesses priorities, Robeco aims to influence the updated Nationally Determined Contributions (NDCs) and ensure continued policy support for climate and biodiversity goals.”

For the corporate campaign in encouraging companies to pursue strong net-zero policies, Robeco continues to engage with over 100 high-emitting companies, despite declining shareholder support and fewer climate resolutions during the AGM season.

“Collaborations with other investors, such as through the Climate Action 100+ group, remain central to success in this,” says Cluster Lead for Environmental Engagement, Cristina Cedillo. “Efforts to combat global warming by adhering to net-zero initiatives remains a core investment goal, as seen with our engagement with some of the biggest emitters of greenhouse gases.”

The recent backlash against environmental, social and governance (ESG) investing has seen a shift in shareholder empowerment toward increased corporate control. “The road to hell is still paved with good governance,” says Head of Voting, Michiel van Esch.

“The rise in anti-ESG sentiment and regulatory changes in the US have exacerbated the declining influence of shareholders in corporate affairs, particularly over climate resolutions. But it is still important for institutional investors to participate in AGMs to promote transparency, accountability, and meaningful dialogue on ESG issues.”

Finally, executive remuneration remains a staple as a hot topic at AGMs. Robeco has long emphasized the need to balance competitive pay, including contentious high-value share options and ‘moonshot’ awards, with shareholder interests and societal expectations.

“Recent trends such as the rise of restricted stock units (RSUs) and increasing CEO pay raise concerns about governance and fairness,” says Active Ownership specialist Lucas van Beek. “We continue to advocate for transparent, balanced, and performance-aligned remuneration policies that support long-term value creation and stakeholder trust.”

Finally, the report includes a round-up of various meetings with policyholders, from the UK Stewardship Code and European cement industry, to a consultation with the Science-Based Targets initiative (SBTi).

“It’s been another challenging quarter, but Robeco’s steadfast commitment to climate action amid rising geopolitical challenges, nationalism, and regulatory pushback, remains undimmed,” says Head of Active Ownership, Peter van der Werf.

“As we enter the second half of 2025, we look forward to updating clients and stakeholders with our engagement themes and voting work as we continue our deep commitment to sustainability.”