ESG integration
Improving corporate behaviour and long-term returns
The pension fund aims to ensure that ESG information is used in its investments to improve investment decisions.
It focuses on integrating risks and opportunities into the selection process and active share ownership (voting & engagement), with the aim of improving corporate behaviour and long-term investment returns.
The quantitatively managed Robeco investment funds have a slightly better ESG risk score than that of their benchmark. The funds with a sustainable label (the abrdn sustainable bond fund and the Robeco Sustainable Stars equity fund) show a greater improvement. This is also the case for the Robeco High Yield fund.
What stands out is the worse score within emerging markets and High Yield bonds. This is in line with expectations: studies show that ESG risks are higher in emerging markets than in developed countries, for instance when it comes to climate change, social issues or corporate governance. In addition, a relatively large part of the High Yield universe consists of less sustainable sectors, such as related to energy and materials.
Nevertheless, the scores of these portfolios fall in the ‘Medium’ risk category, while those of the European corporate bonds and global equities fall in the ‘Low’ risk category. With this, the overall sustainability risk is rated as low to medium.