We engage with companies and institutions to drive positive change. Where appropriate, we discuss governance, environmental and social issues relevant to the companies’ specific business models. Given the fund’s robust impact investment criteria, we only select companies that contribute to positive change. Therefore, we do not need to use a forceful approach to engagement, but rather can address companies with open, constructive dialogue to more deeply understand their business proposition and sustainability challenges. Only if companies have breached or are nearing a breach of our investment criteria will our engagement become more forceful, and, if deemed unsuccessful, will lead to divestment.
We have one-on-one conversations with companies and other bond issuers to discuss sustainability topics that are important to us as an impact investor. We explore their perspectives, policies, and business practices around our transition themes and minimum standards to understand the depth of the company’s commitments to long-term positive impact. We use a variety of methods to connect with issuers, including on-site visits during bond roadshows, conference calls, letters, and email.
We believe that sustainability challenges cannot be solved alone. Therefore, we also participate in joint engagement initiatives alongside other institutional investors. This method increases the visibility of the topics being discussed and expands the overall power of our engagement activity.
Triodos’ public voice
Part of our responsibility as an impact investor is to publicly state our opinions on important sustainability related topics. We participate in relevant policy discussions and actively lobby for stricter regulation of sustainable finance and impact investing. Additionally, we contribute to market-led initiatives and working groups that aim to grow and mature the impact investing segment with integrity.
Visit our fund impact reports below for a full overview of our engagement activities.