Denmark’s AP Pension has selected EOS – Federated Hermes’s stewardship service provider – to provide stewardship services to the pensions company with a focus on climate and biodiversity.
The DKK171.4bn (€23bn) Danish pension firm appointed EOS to provide engagement, voting and public policy support across its corporate equity and bond assets.
EOS will engage with AP Pension’s holdings across its corporate equity and fixed income portfolios on a range of ESG themes including climate-related issues and biodiversity loss.
Anna Maria Fibla Møller, head of responsible investments at AP Pension, said: “Active ownership is a cornerstone of our work with sustainable investments and an important tool to enhance our overall investment approach.
“We believe that through engagement with companies we can both mitigate negative impacts of our investments on people and planet as well as identify key ESG risks that may have long-term effects on return perspectives.”
Currently, EOS advises on more than $1.4trn of assets to deliver corporate engagement and proxy voting services. The move bolsters its local Nordic presence where it also represents a portfolio of €52bn Danish assets.
Howard Risby, regional lead – UK and Europe engagement at EOS, said: “As calls for a just transition intensify, it is now more important than ever that we contribute to a global financial system that delivers more sustainable outcomes for the environment and all members of society, while offering long-term returns for investors.”
He added: “Through active stewardship and meaningful engagement, our services seek to protect and enhance the value of our clients’ assets, and safeguard their reputation, supporting stronger financial performance and enhanced outcomes.”
EOS currently works with firms on climate change issues that include:
- adopting a strategy and greenhouse gas reduction targets aligned to the Paris Agreement, seeking to limit climate change to 1.5°C, together with aligned financial accounts and political lobbying;
- evaluating the credibility of company transition plans including their reliance on technologies;
- engaging with companies in high methane emitting sector to deploy the best available technology to identify and mitigate methane emissions;
- engaging on physical climate risks and work towards a ‘just transition’ for employees and communities.
The firm also works on biodiversity loss, mainly expecting companies to address marine and terrestrial biodiversity loss across their value chains, in line with the COP15 mission to halt and reverse biodiversity loss by 2030. EOS also expects companies to reduce their impacts on biodiversity across the value chain and aim for a net positive impact on biodiversity as best practice.
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