annual review indst 2024 public - Flipbook - Side 10
10
EOS
Engagement themes for 2025-27
A Greenhouse gas emissions reduction
A Physical risk
A Governance and transparency
A Climate opportunities
Climate
change
A Circular economy and waste reduction
A Pollution
A Inclusion and innovation
A Terms of employment
A Worker health, safety and wellbeing
Human
capital
Circular economy and
zero pollution
A Biodiversity and nature
A Infectious diseases,
antimicrobial resistance
and animal welfare
A Water and oceans
A Access and affordability
A Supply chain rights
A Digital rights and AI
A Indigenous and community
rights
A High geographic risks
Human and
labour rights
Environmental
Social
Natural
resource
stewardship
Wider
societal
impacts
A Conduct and ethics
A Safe products and services
A Responsible tax practices
A Anti-bribery and corruption
Stewardship
A Board composition and
structure
A Board and management
dynamics
A Succession and stability
Board
effectiveness
A Pay design and disclosure
A Responsible pay outcomes
Governance
A Basic shareholder rights
A Minority protections
A Debtholder rights
We will evaluate the credibility of company transition plans,
including their acknowledgement of key policy, technology
and market dependencies. Areas of focus will include
engagement with high methane-emitting sectors and
standard setters to ensure best practices in methane
management. We will also engage with the technology sector,
seeking action to mitigate emissions associated with the high
energy demand for AI-related services.
For physical climate risks, all relevant sectors will be engaged
to build resilience, and we will ask impacted companies to
work towards a just transition for employees and communities.
We will continue to support best practice standards via the
Institutional Investors Group on Climate Change and net-zero
initiatives such as the Net Zero Asset Managers initiative
(NZAM) and the Net-Zero Asset Owner Alliance (NZAOA).
Human and labour rights
We expect companies to acknowledge the likelihood that
human and labour rights impacts are present within some
operations and supply chains and to demonstrate appropriate
board and executive-level governance. We will focus on
protecting indigenous and community rights, and human
rights in high-risk regions such as disputed territories or areas
2
Purpose,
strategy
and policies
Corporate
reporting
Executive
remuneration
Investor
protection
and rights
1
Strategy, risk &
communication
A Business purpose
A Long-term sustainable
strategy
A Capital allocation
A Sustainability transparency
A Audit and accounting
Risk
management
A Enterprise risk practices
A Cyber security
of conflict. We will also continue our emphasis on supply
chain rights with an elevated risk of forced labour, unsafe
working conditions, and other adverse human rights impacts.
We are increasing our focus on the protection of digital rights
in the virtual world, such as the right to data privacy, the right
to freedom of expression, and protection from unfair biases.
More than a decade after the implementation of the UN
Guiding Principles (UNGPs) on Business and Human Rights,2
we seek compliance as a norm. We consider recommending
voting against directors of companies where material
breaches are not being adequately remediated, or if the
company underperforms on human rights benchmarks.
We are increasing our focus on the
protection of digital rights in the virtual
world, such as the right to data privacy,
the right to freedom of expression, and
protection from unfair biases.
As companies transition to a low-carbon economy, we expect
them to plan for a just transition that considers the impact on
human and labour rights within the company and in the
surrounding value chain. We will engage to ensure that companies
implement the requirements of new EU legislation, such as the
Corporate Supply Chain Due Diligence Directive and the AI Act.
Governments and business must double down on climate action | World Economic Forum.
OHCHR | UNGPs next 10 years project.
