The annual peak season for annual general meetings is drawing to a close. This is a period when we are particularly busy exercising our active ownership. At these meetings, we have a direct opportunity to influence the companies in which we invest. Once again this year, in LD Pensions we have supported many proposals aimed at promoting climate and environmental issues and ensuring better social standards. At the same time, we have voted against initiatives which we have deemed to be too unambitious.
Amir Hassan, an ESG analyst in LD Pensions, has, over the past few months, been making daily decisions on LD Pensions’ voting at the annual general meetings of both Danish and international companies.
We have a strong interest in using our voting rights as shareholders to steer companies towards greater sustainability. We do this to increase companies’ resilience and generate good returns in both the short and long term, but we also do it to put pressure on companies that may not themselves take the initiative to transition towards sustainability.
Focus on better rights for workers
Once again this year, we have made it a priority to vote in favour of proposals aimed at ensuring better conditions for employees at the companies in which we invest. We have done so, for example, at the annual general meeting of one of the US’s largest banks, Wells Fargo, and at one of the leading US food producers, Tyson Foods.
At Wells Fargo, we have voted in favour of a proposal calling for an independent assessment of the company’s compliance with freedom of association and collective bargaining. The assessment is to evaluate management’s interference when employees attempt to form or join trade unions, and to recommend possible improvements.
At Tyson Foods, we have supported a proposal to carry out an independent assessment of the company’s policies and practices regarding the prevention of illegal child labour throughout its value chain. The assessment is to be published on the company’s website and must, amongst other things, include recommendations for action and regular reporting on progress.
Protection of nature and biodiversity
At the Tyson Foods Annual General Meeting, we also voted in favour of a proposal that the company should work towards achieving verified deforestation-free supply chains by 2025, and that Tyson Foods begins to assess and report on its dependence on and impact on biodiversity in line with the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD).
“Nature and biodiversity form the basis for around half of the global economy and, consequently, for many of the companies in which LD Pensions has invested. By protecting nature and biodiversity, companies can reduce risks and promote a sustainable future – both for themselves and for society. We are trying to push for this by exercising our voting rights at general meetings,” says Amir Hassan.
LD Pensions votes at the annual general meetings of all Danish listed companies in which we hold a shareholding. We also vote at the annual general meetings of many foreign listed companies.
Unfortunately, the proposals we supported at Wells Fargo and Tyson Foods, respectively, were not adopted, as there was insufficient support.
