News in brief: 22 March

- The Dutch Federation of Pension Funds has said it “regrets the weakening” of the Council on the Corporate Sustainability Due Diligence Directive (CSDDD) after an agreement was reached by the European Parliament.

The law will require companies to conduct sustainability due diligence to prevent human rights violations and environmental damage in their value chains. It applies to large companies, with more than 1,000 employees and €450m in turnover. This means that fewer companies will be covered by the CSDD than was previously agreed with the European Parliament.

In addition, the Pension Federation would have liked the CSDD to also apply to investors, but that is not the case. However, the European Commission will revisit the role of the financial sector within two years.

- Denmark’s AkademikerPension was unsuccessful with its shareholder proposal at the recent Maersk annual general meeting.

The pension fund had submitted the shareholder proposal with LD Fonde asking Maersk to report more and better on its work to assess and manage the risk of contributing to violations of human rights and labour rights. AkademikerPension investment director, Anders Schelde, said a lack of information in this area “presents challenges when we as investors assess whether a company is a good investment”.

“Today, it's no longer just concepts like market risk, liquidity risk and other traditional financial concepts that come into play. Our risk assessment now also covers sustainability risks – that is, a company's handling of risks related to environmental, social and governance issues.”

- Finland’s Keva has purchased a hospital and medical centre to be built by Hartela in the Finnish city of Turku.

The project will commence immediately, and Finnish private healthcare company, Terveystalo, is earmarked to move into the property in the summer of 2027. Keva director of real estate, Carl-Henrik Roselius, said: “As a long-term investor, this under-construction hospital and medical centre project is a very suitable investment target for Keva.

“We value long leases and with this project, it is a pleasure to be able to implement modern offices for Terveystalo. It's great to be able to implement the project in cooperation with Hartela and Terveystalo and contribute to the development of Turku's Kupitta.”

- Aon has launched an enhanced responsible investment solution, RI-360i, which provides institutional investors with better insights into their portfolios and enables them to make better decisions.

The solution also includes effective risk management as well as alignment with goals and ambitions such as net zero. Aon senior responsible investment consultant, Craig Campbell, said: “Sustainability issues represent financial risks for investors. The ability to track and monitor these issues is key to preserving asset values and delivering ambitions. As investors navigate new forms of volatility, heightened regulatory and public scrutiny also bring reputational risks.

“In line with their values and ambitions, many asset owners have established specific responsible investment goals and priorities. With that, there is now a need for a clear and concise overview of investment portfolios and how they compare with where stakeholders want to get to. Aon’s RI-360i enables investors to embed their values and goals into portfolios by providing better insights about the sustainability issues, including climate risk that may exist with their investments.”



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