Dialogue with companies is one of the tools LD Pensions uses to exercise active ownership. The aim is to influence the companies we invest in to address material ESG issues and support responsible development.
Our work is carried out through a structured process in which we identify relevant companies and themes, set objectives for the dialogues and regularly monitor progress.
The engagement is managed by our engagement partner, Federated Hermes EOS, which engages with companies on behalf of us and other institutional investors. This enables us to work with more companies and on more issues than we would be able to on our own. At the same time, our collaboration with other institutional investors strengthens our ability to influence companies.
The dialogues may be based on specific incidents, potential breaches of international norms and standards, or significant ESG risks. These may, for example, include climate and the environment, labour and human rights, corporate governance, strategy, risk management or reporting.
In the first quarter of 2026, Federated Hermes EOS was engaged in 404 dialogue processes with defined milestones across 166 companies in LD Pensions’ portfolio. The main themes of climate and the environment, and social issues, together accounted for 81% of the dialogues.
We are following up on the discussions
Company dialogues can extend over several years, as many of the issues raised require changes to the company’s policies, processes or management commitment.
Federated Hermes EOS tracks the dialogues through pre-defined milestones. A milestone might, for example, be a company acknowledging an issue, committing to draw up an action plan, or initiating specific improvements.
In the first quarter of 2026, progress was recorded in 43 dialogue processes with defined milestones, representing 11 per cent of all dialogue processes.
A lack of progress during a single period does not necessarily mean that the dialogue is of no value. Some cases require long-term follow-up, whilst in other instances it may be necessary to increase the pressure on the company.
