Impact

The companies in the Triodos Sustainable Investment Universe tend to be large and complex organisations, which due to their size and many links with society are able to boost the pace of sustainable change. Considering this element of scale, the influence that stakeholders have in these companies can be significant. Triodos SICAV I is among many stakeholders in these companies. The fund works together with other sustainable investors and other stakeholders to stimulate listed companies to enhance their sustainability. This is increasingly appreciated by companies and many even consider inclusion in the Triodos Sustainable Investment Universe an important achievement.

Triodos SICAV I assesses the sustainability performances of companies by means of a wide range of indicators. This allows the fund to determine how the companies in its portfolios perform compared to their peers. In the table below, the sustainability scores of the portfolios of Triodos Sustainable Bond Fund and Triodos Sustainable Equity Fund are set off against the sustainability scores of the relevant indices. Since Triodos Sustainable Mixed Fund is a combination of the portfolios of Triodos Sustainable Bond Fund and Triodos Sustainable Equity Fund, it is not represented in the table below. Triodos Sustainable Pioneer Fund invests exclusively in companies that offer sustainable products and services, therefore it is also not included.

Sustainability scores

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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 customised weight settings. For bonds, the sustainability scores relate to the non-sovereign constituents of the portfolio and the index. For all companies and institutions in the portfolio, ratings are available; for the index, approximately 87% of the constituents are covered in the rating. Sovereign bonds are not included in the scores given above. The equity portfolio consists of companies that offer sustainable products or services and companies that are best in class in terms of sustainability within their sector. The sustainability score of the fund portfolio represents 92% of the fund’s invested assets. The companies for which no sustainability rating is available are either classified as companies with sustainable products or services, while for one company no rating is available because the company is a recent spin-off from a selected company. The table shows the scores at December 31, 2015.

Environment

70

60

+10

63

51

+12

Social

70

64

+6

60

54

+6

Governance

68

60

+8

63

55

+8

 

 

 

 

 

 

 

Some achievements that are attributable to the fund’s engagement efforts include:

  • In April 2015, following-up on engagement efforts with regard to animal welfare, the fund sent letters to eight food retail and hotel & restaurant companies, describing the key findings of its engagement activities in 2014 and highlighting best practices. Each company received specific recommendations for change based on these best practices. The fund will continue to assess progress and continue its engagement efforts.
  • Since 2007 the fund has been urging DSM from the Netherlands to increase its renewable energy use and production. The fund considers this an important issue for the company, as the amount of energy that DSM uses is equivalent to the consumption of 3 million households. In September 2015 DSM announced its commitment to purchase 50% of its energy from renewable sources by 2025 and to become 100% renewable in the longer term.
  • Thanks to growing pressure from numerous stakeholders, including Triodos Investment Management, the Rana Plaza Donors Trust Fund has finally reached its goal of USD 30 million. This fund was set up in January 2014 by the International Labour Organisation to compensate the victims of the Rana Plaza disaster in Bangladesh in April 2013. The fund invests in H&M, VF Corporation and Inditex. All three companies contributed to the relief fund.
  • For many years, RELX has been subject to criticism from scientists. Their concerns mostly relate to the high subscription fees charged by the company for individual journals, which hinders the availability of scientific information. As early as in 2012, the fund raised questions about this at the Dutch AGM. Since the beginning of 2015 the criticism has further intensified. The fund discussed concerns with RELX in August 2015. On December 10, 2015 it was announced that the Dutch universities and Elsevier (part of RELX) had reached an agreement about a transition to open access.

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