Corporate Social Responsibility 2021 - Flipbook - Page 8
INDUSTRIENS PENSIONSFORSIKRING A/S
2021
CORPORATE SOCIAL RESPONSIBILITY REPORT
Therefore, in 2021 Industriens Pension worked on
a new sustainability strategy for property
investments, meaning that, in future, Industriens
Pension will have new buildings certified for
sustainability up to at least DGNB1 Gold standard.
The DGNB standard was selected as it is a
recognised and holistically oriented certification
scheme that takes into account the lifecycle of
building materials, energy consumption etc.
before, during and after construction. Sustainable
construction is a good investment for members of
Industriens Pension, as it provides good returns.
Furthermore, it is attractive for owners and
tenants due to low energy and heating
consumption, improved indoor climate, etc.
Last year, Industriens Pension invested in
Jernbanebyen,
Copenhagen’s
upcoming
sustainable city district focusing on reducing
carbon footprint, using environmentally friendly
and energy-efficient building materials and
optimising indoor climate, acoustics and daylight.
Steering portfolio companies onto a more
sustainable path
Industriens Pension also promotes the green
transition by exercising active ownership through
dialogue and exercising voting rights. For example,
in 2021, Industriens Pension was in dialogue with
Royal Dutch Shell concerning the company’s
climate strategy.
Table 1
Industriens Pension reports regularly on its website
on how the policy for active ownership is being
implemented. The website also includes a database
of all voting activity by Industriens Pension. Table 1
in this report shows the most important figures
regarding dialogue with portfolio companies and
exercising voting rights in 2021.
Focus on employment conditions and
diversity
Industriens Pension has focus on securing respect
for labour rights and human rights globally, and this
effort is included as a special consideration in the
investment process.
Active ownership in 2021
ESG-related dialogue processes
- of which dialogue processes related to climate aspects
- of which dialogue processes related to human rights aspects
Companies with which we have had a dialogue
Proposals at general meeting voted on, total
- of which voting against the board of directors
1
Industriens Pension perceived Shell as very
attentive and willing to engage in dialogue. At the
most recent general meeting, Industriens Pension
voted against Shell’s own climate strategy plan,
while it voted in favour of a more ambitious climate
plan proposed by an NGO. This was partly because
Shell’s (and other oil companies’) climate plan
should be in line with the Paris Agreement and
include measurable and absolute reductions in
greenhouse gas emissions, and partly because the
plan should set clear short-term, medium-term and
long-term targets.
Number
695
252
45
389
3,688
420
HIGH RETURNS ON A RESPONSIBLE FOUNDATION
The aim is to safeguard equal rights for all human
beings and to create a labour market where
employees are treated fairly, while minimising the
risk of becoming ill or injured at work.
Better working conditions and minimum wage
Through its international cooperation partner EOS
at Federated Hermes, Industriens Pension has had
dialogue with Tesco, the British supermarket
chain, because Tesco has been criticised for poor
employment conditions and low wages.
Along with other investors, Industriens Pension
encouraged Tesco to secure better working
conditions and a minimum wage for its
employees. The company has accepted the
criticism and changed its remuneration policy,
thus ensuring employees a minimum wage,
improved working conditions and a better
corporate culture. As a result, Tesco now scores
among the top 25% in surveys of employee
motivation.
Similarly, Industriens Pension considers it
important to promote positive governance
aspects, including diversity, in the managements
of the companies invested in.
Diversity is good for the bottom line
A number of studies have shown that diversity is
good for the bottom line. However, ensuring
greater diversity in a company can be a challenge,
even with the best intentions. Consequently,
Industriens Pension screens all Danish portfolio
companies on various diversity measures,
including gender distribution.
Negative sustainability impact
A new regulatory framework from the EU known
as the Disclosure Regulation means that, in
future, Industriens Pension is required to
disclose to members sustainability information
related to the pension scheme. Furthermore, we
are required to disclose information about the
Principle Adverse Impact (PAI) of investments on
sustainability factors. Industriens Pension
welcomes the initiative and will report the
relevant PAI indicators in the future. We expect
to regularly expand the indicators as we obtain
better data, and data on more asset classes.
Industriens Pension examines whether the
companies have published a diversity policy and set
targets for diversity in the executive management
and board of directors. If a company has not, or has
only partly, set targets for diversity, Industriens
Pension will start a dialogue with the company.
Fortunately, only few Danish companies pose real
challenges in this respect. Through dialogue,
Industriens Pension aims to put pressure on all
Danish companies to work towards greater diversity
in a targeted and structured manner.
Industriens Pension protects its
surroundings
A large part of the work on responsible investment
entails ensuring that Industriens Pension’s
investments do not have a serious negative impact
on society. Consequently, Industriens Pension
measures whether its investments live up to the
ambition for lower carbon emissions. Each year,
total carbon emissions and the carbon footprint
from the listed share portfolio are calculated.
https://dk-gbc.dk/dgnb
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