Ocean health engagement leads Q4 Active Ownership report

The report also includes updates on the progress being made with two other engagement themes focusing on the Acceleration to Paris and the Just Transition, plus a synopsis on concerns of legislation that weakens shareholder rights in Italy.

The Ocean Health theme, launched in the fourth quarter but beginning in the first quarter of 2025, will see engagement with six companies – two each from the seafood, shipping and cruise industries. It aims to tackle climate change, biodiversity loss and pollution, and mitigate ocean footprints. Comprising 70% of the Earth’s surface, our oceans play a vital role in the planet’s health and the global economy, but it’s an arena that is often overlooked by investors.

“A decade ago, we addressed modern slavery in the seafood industry in Thailand; this theme will focus on environmental health indicators of the ocean biome, and how companies affect them with their practices,” says Sylvia van Waveren, Robeco’s engagement specialist heading the theme.
“The world’s seas are both a food source and a place of economic activity, ranging from fisheries, shipping and tourism, to renewable energy. It is also increasingly being overexploited. The engagement with companies in three sectors that rely on the oceans – seafood, shipping and cruise lines – will aim to reduce their environmental and biodiversity footprints on this precious resource.”

To meet the Paris Agreement temperature goals, the Acceleration to Paris engagement theme begun in 2021 is now being extended to become an ‘evergreen’ theme.

In her report, engagement specialist Cristina Cedillo looks back on the progress made in 2024, when a majority of companies made commitments to switch to clean energy sources, and sets out the minimum expectations for continued engagement in 2025.

“The Acceleration to Paris engagement has enjoyed significant progress in gaining corporate commitments to phase out fossil fuels,” Cedillo says. “With many engagements successfully closed, we now need to look at companies scoring badly in our assessment of their alignment with the Paris goals.”

Moving to a low-carbon world requires action to affect those displaced by it. Shutting coal mines, for example, brings job losses for mining communities and cannot be done in isolation. To address the issue, the team began a ‘Just Transition’ engagement in the third quarter of 2023.

One year on, engagement specialist Ghislaine Nadaud reports on the progress made in the dialogues with six companies in two emerging markets, and the challenges ahead. She also details how the initiative will expand to the financial sector in 2025.

“Many companies have issued explicit commitments, while translating them into concrete actions remains a challenge,” she says. “Many seeds have now been planted in getting more companies committing to the transition. We’ll now expand the theme to cover the financial sector by look at the funding side of it as well.”

Finally, the team has voiced its concerns over the Italian Capital Markets Bill, enacted in March 2024. The legislation aims to boost competitiveness but faces criticism for weakening minority shareholder rights and complicating governance.

“Our concerns include increased voting rights for loyalty shares, closed-door AGMs and a complex director election process,’’ says voting specialist Diana Trif. “But there may be some light at the end of the tunnel. Following an investor backlash means Italy is now considering revising the controversial rules.”

“Engagement lies at the heart of everything that the Active Ownership team does at Robeco,” says Peter van der Werf, head of the team. We view regular and open dialogues with investee companies as an essential part of sustainable investing.”

“The fourth quarter saw the launch of a new engagement theme that will start in 2025, while making good progress with two other themes, both linked to climate change and the transition to a low-carbon economy.”

“As 2025 progresses, we look forward to updating clients and stakeholders with our engagement results and voting decisions as we continue our deep commitment to sustainability.”