The Sustainability and Impact Strategy Committee (SISC) acts as an advisory body to the executive committee. The SISC is responsible for reviewing climate-related actions and provide advisory input on specific proposals. In 2019 it commissioned a climate change task force to further progress on the important topic of climate change. The task force consists of senior experts from the sustainability research, active ownership, risk management and investment teams. The Climate Change Task-force (CCTF) acts as the central group of competence on climate change related topics, adapting existing investment strategies, risk management, and active ownership activities, as well as developing new products. CCTF progress is reported to the SISC on a monthly basis and the Executive Committee of Robeco was updated twice in 2019.
Robeco / RobecoSAM regularly assesses actual and potential impacts of climate-related short, medium and long-term risks and opportunities on its businesses, strategy, and financial planning, where such information is material.
How we manage and integrate climate change risks and opportunities in our organisation
- Risk management: Robeco has set up a comprehensive Enterprise Risk Management Framework for management of all relevant fnancial and nonfinancial (including regulatory) risk. In 2018, apart from its general focus on risk governance, Robeco started investigating and monitoring environmental risks, and climate risks in particular. In this context, the Financial Risk Management department focuses on transition risk by visualizing carbon emissions and designing climate change scenarios in order to monitor the impact on client portfolios, both in equities and fixed income.
-Decarbonization process: Robeco and RobecoSAM are committed to act in line with the Paris climate Agreement and live after the commitments made in the Dutch Climate Agreement (klimaatakkoord). This means that we need to set a portfolio decarbonization pathway. Currently we are taking actions to having the appropriate data and tooling in place, assessing the expected consequences on our investment strategies.
- Active Ownership process: Robeco and RobecoSAM have a long track record of engaging with companies on their environmental, social and governance practices and using our voting rights to support shareholder proposals that help address climate change risks. We encourage the implementation of proactive and ambitious environmental strategies, the pursuit of operational excellence, the creation of asset portfolio resilience, the innovation of business models, and responsible participation in the public policy debate.
- Investment process: Robeco and RobecoSAM’s investment teams adopt a holistic approach when integrating sustainability into their investment processes. We believe that systematically considering climate change risks in our investment processes is essential to the success of our investing strategies. We address climate change risks through evaluation of business models, corporate climate change strategies, products and services. By including the analysis on climate change in the investment process, our fundamental analysts have a better view on the risks (and opportunities) companies are exposed to.