15 years of success through active engagement

2004: Robeco starts proxy voting for 70% of investments in its equity funds – the first Dutch asset manager to do so

2005: Robeco launches its engagement service

2006: Robeco becomes one of the first signatories to the United Nationssupported Principles for Responsible Investment (PRI), which was founded in 2006, and acquires RobecoSAM

2007: We assess the environmental and carbon impact of around 80% of our listed equity portfolios, with the help of Trucost

2008: We co-organize Stemmend Nederland, a collaborative initiative aimed at creating a well-functioning voting chain

2009: Robeco actively supports collaborative engagements such as the Carbon Disclosure Project (CDP), the Forst Footprint Disclosure Initiative and the CEO Water Mandate

2010: Robeco joins the Asian Corporate Governance Association (ACGA) as an active member

2011: Following publications from the United Nations Environment Program, Robeco engages with energy companies on oil spills in Nigeria

2012: We complete a collaborativeengagement CDP project, in which we engaged with 44 companies on behalf of a large group of investors, with a 46% success rate. With the support from companies with which we engaged, the collaboration results in investors receiving pertinent information in a consistent way

2013: Following the Rana Plaza disaster in Bangladesh in which more than 1,000 workers died, we begin engagement on health and safety in the clothing industry

2014: Inspired by the new Ranking Digital Rights Index, we begin engagement on data privacy. We also commence successful engagements on food and health, with a focus on tackling obesity and irresponsible marketing

2015: We become a Tier 1-rated signatory of the UK Stewardship Code

2016: Significant progress is seen in reporting by energy companies on deep water drilling, after three years of engagement following the Deepwater Horizon accident in the Gulf of Mexico

2017: Shareholder proposals are filed to reduce antibiotics use in McDonalds’ supply chain, leading to corporate action

2018: A stunning success is achieved when Shell agrees to set short-term targets for carbon reduction and link executive pay to these targets. It follows engagement jointly led by Robeco and the Church of England on behalf of Climate Action 100+

2019: Robeco publishes a unique position paper on palm oil, setting strict standards for the industry, and becomes the first investor to join the Roundtable on Sustainable Palm Oil

WHY EXCLUSIONS ALONE DON’T PROMOTE SUSTAINABILITY

Exclusions may be an obvious way for investors to reflect their values. But it’s doubtful whether they result in sustainability improvements. For investors wanting to make a difference, exclusions can be considered nothing more than a small first step.

The arguments for and against exclusions are analyzed in a recent paper by Robeco’s head of quantitative research, David Blitz, and Laurens Swinkels, senior researcher and an assistant professor of finance at Erasmus University, published in the Journal of Portfolio Management.

“Many believe that investors can contribute to a more sustainable world by divesting from firms with the worst sustainability profiles,” the authors say in the article, which is entitled ‘Is Exclusion Effective?’. “But because exclusion is effectively a transfer of ownership from concerned to lessconcerned investors, it is anything but obvious how this is supposed to lead to changes for the better in society.”

They argue that investors are likely to achieve more by exerting influence as an active shareholder.

What’s more, the authors explain that most of the arguments usually raised to support exclusions don’t hold. Exclusions do not necessarily increase the cost of capital of firms and they do not cut them off from capital markets. Nor do they consistently lead to better investment results. Finally, far from the original idea of sending a powerful message, exclusions are often perceived as mere greenwashing.