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Sustainable investing in big business

In 2014, we engaged 495 times (2013: 554) with 241 companies (2013: 250).

Read more about our engagement and the results in our Company Engagement Report 2014.

Some investors want to invest as sustainably as possible in companies listed on the stock-exchange. Triodos Bank offers its customers the opportunity to invest in many of the world’s most sustainable listed companies via positively screened Social Responsible Investment (SRI) Funds. Companies in these funds are carefully selected on their sustainable performance compared to their industry peers, and meet Triodos Bank’s minimum standards for investment. We also enter into a constructive dialogue about their sustainability practices with many of these companies.

Sustainable performance

Triodos Research uses a diverse range of indicators to assess the sustainability performance of listed companies, so the fund can determine how sustainable a company is compared to its peers.

The table below provides more detail. It compares the sustainability scores of the portfolios of Triodos’ two SRI funds - Triodos Sustainable Bond Fund and Triodos Sustainable Equity Fund, with the sustainability scores of the indices.

Sustainability scores

Average indicative scores* (0-100)

Bond
portfolio

iBoxx €
Non-Sovereigns Index

Difference

Equity
Portfolio

MSCI
World
Index

Difference

 

 

 

 

 

 

 

*

The scores are based on Sustainalytics ratings, using customized weight settings. For bonds, the sustainability scores relate to the non-sovereign constituents of the portfolio and the index. Ratings are available for all companies and institutions included in the portfolio; for the index approximately 85% of the constituents is covered. The scores above do not cover sovereign bonds. The equity portfolio consists of companies with sustainable products and services and companies that quality as best-in-class within their sector. The above-average sustainability score of the fund portfolio relates to 88% of the fund’s invested assets. The companies for which no sustainability rating is available are all companies with sustainable activities. The table shows scores as at December 31, 2014.

Environment

65

58

+7

62

50

+12

Social

67

63

+4

62

54

+8

Governance

66

58

+8

63

54

+9

 

 

 

 

 

 

 

How we encourage greater corporate transparency

Transparency is key to sustainable finance. That’s why it is a core business principle of Triodos Bank. The Triodos SRI funds are amongst the most transparent in the sector according to the European Sustainable Investment Forum (Eurosif) and the United Nations office that oversees the United Nations Principles on Responsible Investment.

We are one of the few providers to report on our research methodology, our investment criteria, our full investment universe and the investment portfolio per fund. We tell you what guides us in our voting at shareholder meetings (proxy voting guidelines) as well as how we voted per company.

Find more details on our website including portfolios, voting guidelines, the Eurosif SRI transparency code and a letter calling on all companies we invest in to do more to improve Board diversity.