Nature and governance lead Q4 Active Ownership report

The round-up of activities in the fourth quarter of 2025 discusses the closure of one nature-related engagement theme, the continuation of two others, the ongoing efforts to reduce the famous Korea discount, and how cybersecurity has become more important in the AI era.

The report begins though with the highlights of policy engagements with public bodies over the second half, when the team contributed to policy discussions with the EU, national governments and several initiatives to further the sustainability agenda.

“It was a busy six months engaging with various public authorities on issues ranging from climate plans and deforestation, to labor rights in Taiwan, sustainability reporting standards and methane emissions,” says Head of Active Ownership Peter van der Werf in the opening to the report.

“Highlights include advocating for clearer EU national energy plans, robust enforcement of the EU Deforestation Regulation, and improved labor rights for migrant workers in Taiwan. We also provided feedback on science-based targets and Sustainability Reporting Standards.”

In Q4, Robeco closed its three-year engagement theme under the Natural Resource Management theme on water-related risks in high-stress regions, aiming for improved disclosures, measurable targets and resilient strategies.

“Water use by companies is increasingly under scrutiny as the world faces an escalating shortage of fresh water amid spiraling population growth,” says Senior Engagement Specialist Sylvia van Waveren in her report about the theme’s achievements, and the challenges still faced.

“Companies operating in high water-stressed regions are exposed to significant risks if they fail to manage water use sustainably. Engagement successes include breweries and utilities reducing water use and wastewater impact, while fertilizer and shale gas firms have lagged.”

South Korea and its pervasive Korea discount – where stock prices in the country lag behind those of other emerging markets – has long been a governance issue.

“The Value-Up program has been working to address the disparity, though resistance persists from controlling families and political sensitivities,” says Engagement Specialist Ronnie Lim.

“Key 2025 reforms in the initiative aimed to enhance transparency and minority shareholder protection, but success still depends on sustained enforcement and investor vigilance.”

Biodiversity is a core engagement topic for Robeco, with two dedicated themes examining how companies in high-impact sectors embed nature-friendly policies into their strategies. “Progress so far includes stronger governance and transparency, though targets and cross-business integration remain limited,” says Senior Engagement Specialist Laura Bosch in her report.

“As with so much in sustainability, we can’t change the world on our own. Our biodiversity engagement efforts include a collaboration with PRI Spring that included a field trip to Brazil’s Cerrado biome.”

“It was an experience that provided invaluable context for our corporate engagements, highlighting the interconnectedness of local livelihoods, biodiversity restoration, and supply chain practices.”