Zooming in on specific themes
To monitor our exposure to specific themes or sectors defined by material ESG risks, we look at our top holdings on an annual basis.
More specifically, we select a few key themes in which we see opportunities to further understand how material risks related to these sectors or themes are proactively managed by companies with the goal of influencing corporate practices.
Responsible community management protects shareholder value
In 2014, for example, we engaged with a number of companies to understand their approaches to managing and mitigating community risks.
This was particularly related to an increased number of incidents at infrastructure and extractives companies regarding the violation of human rights and environmental protection.
We believe that companies that adopt sound practice in managing community impacts in their operations are best positioned to protect shareholder value and meet stakeholder expectations.
Gaining knowledge to improve
The outcome of our dialogue included a report that guides our dialogue with companies and builds the case for improved risk management by companies with operations that have high environmental and social impacts on local communities – particularly in high-risk geographies and capital-intensive industries.
The report also provided specific recommendations to companies. These include:
- Developing company systems and processes according to international best practice guidelines
- Ensuring ‘front-end’ commitments to early stage community consultation, engagement and remediation
- Supplementing the gaps in processes led by government agencies
- Ensuring continuous, on-the-ground presence to foster positive relationships with local communities.
Thematic research reports, which can be found on this page, include:
- Managing community risk
- Water risks for Swedish businesses
- Responsible corporate tax practices
- Clinical trials outside Europe