Robeco Expands ESG Focus To Deforestation And Diversity

Robeco’s Active Ownership team has released its strategic engagement themes for 2025, a significant evolution in its sustainable investing agenda. The team will expand its robust climate-focused approach to include themes such as deforestation, natural resource management, diversity, and transition minerals. This is part of the company’s commitment to tackling pressing environmental and social challenges while advancing its net-zero ambitions.

Peter van der Werf, Head of Active Ownership at Robeco, said, “We continue to significantly invest a lot of time in our climate engagement and are now in the process of establishing nature targets connecting to our net-zero roadmap.” The new focus areas show that Robeco recognizes the interlinkages between climate, biodiversity, and human capital in driving sustainable investment outcomes.

Addressing Deforestation Beyond Palm Oil

Deforestation, an issue of long-standing concern for Robeco, will in 2025 be broadened to cover all industries related to soy, beef, leather, paper, and pulp production, in addition to palm oil. These industries account for significant contributions to global forest loss, accelerating the degradation of biodiversity and climate change.

It means the enhanced engagement represents a more holistic approach to managing natural resources. As part of this theme, water and waste will also become core issues that Robeco addresses. This will ensure that it advocates for sustainable use of resources and minimizes the negative impact on the environment.

More Focus on Diversity and Human Capital

Diversity and human capital management will be another area of focus for the Active Ownership team of Robeco in 2025: the company realizes the potential of a workplace with diversity, so it expands its diversity and inclusion strategy into other broader aspects of human capital.

“We are expanding the scope of our work on diversity and inclusion to do more on human capital management,” van der Werf explained. “This includes employee relations, satisfaction, and whether employees feel valued at work.”

This reflects the increased acknowledgment of human capital as a significant element in corporate sustainability. Engaging with companies on issues related to employee well-being, satisfaction, and workplace equity can positively impact both employees and organizations, and it is critical to the fostering of innovation, productivity, and long-term business success.

Support the Transition to Decarbonization

The global shift toward decarbonization has brought transition minerals into sharper focus for sustainable investors. These minerals, such as lithium, cobalt, and nickel, are essential components of renewable energy technologies and electric vehicles. However, their extraction and supply chains often raise environmental and social concerns.

As the transition minerals became a priority theme for engagement at Robeco, it reflects commitment toward supporting the clean energy transition without neglecting its associated risks. Through engagement with companies in the sector, the firm aims at responsible sourcing and enhanced supply chain transparency to ensure minimum environmental and social impacts.

Evergreen Themes of Climate and Biodiversity

While new themes are being introduced, the focus on climate change and biodiversity remains at the heart of Robeco’s strategy. These evergreen themes are aligned with the firm’s broader goals of achieving net-zero emissions and fostering a sustainable future. Through continued engagement on these fronts, Robeco seeks to influence corporate behavior and drive meaningful progress toward global sustainability targets.

A Holistic Approach to Sustainable Investing

Robeco’s expanded engagement themes for 2025 reflect a holistic approach to sustainable investing, recognizing the interdependence of environmental, social, and governance (ESG) issues. By addressing deforestation, natural resource management, diversity, and transition minerals, the firm is positioning itself as a leader in tackling the complex challenges of sustainability.

As van der Werf noted, these efforts form part of a broader mission of Robeco: to integrate ESG considerations into its investment processes and drive positive change. “Sustainability is not a standalone goal; it’s intertwined with everything we do as investors,” he emphasized.

With this intensified focus on these key areas, Robeco is in an excellent position to support the transition toward a more sustainable and equitable world while delivering long-term value for its clients.

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