Engagement - monitoring
Triodos SICAV I continuously assesses new candidates for sustainable investment and monitors companies that have already been selected. Once a company has been selected for the Universe, it is actively monitored by the fund and subjected to a full re-assessment once every three years. A potential breach of Triodos’ minimum standards leads to an in-depth investigation.
Examples of monitoring activities that took place in 2016 included:
- a meeting with ING where the fund’s concerns about the company’s involvement in the Great Barrier Reef region were discussed. ING addressed the fund’s concerns and as a result the company remained selected for investment. ING’s involvement in the Dakota Access Pipeline in the US also led to a dialogue and some additional questions are still to be addressed. Questions about involvement in the Dakota Access Pipeline are also outstanding with regard to the Spanish financial group BBVA;
- a discussion with FMO where the fund raised concerns about the company’s involvement in the Aqua Zarca project in Honduras. As a result of broader criticism raised by stakeholders about the project, the company decided to withdraw its funding for the project;
- raised concerns with AkzoNobel about salt mines in Spain and the storage of oil in old salt mines in the Netherlands, as oil storage harms the environment. The company has since announced plans to address the environmental concerns regarding the salt mines in Spain. With regard to the storage of oil in the Dutch salt mines, the fund has discussed the materiality of these activities for AkzoNobel. Questions about the recent leakage of stored oil in the salt mines are still to be addressed by the company;
- Contact with LafargeHolcim to discuss human rights concerns in Syria. In France, a criminal investigation is ongoing based on a complaint filed by a French NGO, the European Center for Constitutional and Human Rights (ECCHR), and a number of Syrian former employees. The investigation may take a long time to complete. In the meantime, the company has taken measures to improve its programmes. The fund will closely monitor the effectiveness of the measures taken and the outcomes of the investigation;
- A discussion with Heineken over employee safety concern following an accident that occurred in Brazil. The fund also attended a stakeholder dialogue to discuss the presence of the company in Africa, particularly in Burundi.