Week 6: Shareholder Engagement

Question 1

How does PGGM sees responsible investing?

Answer 1

Tompouce
bottom: less negative impact (ie no tobacco)
middle/most important: better risk management in the long term
top: more positive impact

Question 2

What are the different instruments for responsible investing?

Answer 2

NO (what we do not want | exclusions)
CHANGE (What we want to improve | making firms and markets more sustainable through ESG integration and stewardship)
YES (What we want | Investing in solutions that contribute to SDG’s (impact investing))

Question 3

Name pro and cons for decarbonizing your investment portfolio (in line with Paris agreement).

Answer 3

Pro: lower climate risk, better prepared  stronger long-term results, improve reputation and fit with participants, prepared for (future) regulation

Cons: portfolio-level emissions are not real-world emissions, it does not lower global emissions, limits diversification, real-world impact: brown firms transform to green firms, thus you give up influence

Question 4

Which 3 instruments help by getting a net zero emission portfolio?

Answer 4

capital allocation, active ownership, exclusion

Question 5

What is active ownership?

Answer 5

companies that are willing to become green, help stimulate companies to transition with three elements:
> evaluate > engage > vote > evaluate

Question 6

What 4 things can you do to engage with oil en gas companies?

Answer 6

• Decrease oil and gas production/sales (demand is too high, so not reasonable)
• Increase renewables generation (!!!)
• Increase low-carbon investments (e.g. biofuels, hydrogen) (!!!)
• Increase efficiency