Stakeholder Engagement and Stewardship - EUROFIMA

The third pillar of EUROFIMA’s ESG Investments Framework prescribes engagements with the companies Treasury & Asset Management unit invests in or counterparties that EUROFIMA is entering in financial transactions with. Proactive engagement with investee companies on ESG topics includes either individual or collective engagement encouraging the revision of their ESG approach for any positive change.

The primary objective of the engagements conducted by EUROFIMA is to comply with the fiduciary duty towards its shareholders to manage all assets in a careful and responsible manner. The secondary objective is to fulfill EUROFIMA’s commitment to the UN Principles for Responsible Investment: Principle 2 (“We will be active owners and incorporate ESG issues into our ownership policies and practices”) and Principle 3 (“We will seek appropriate disclosure on ESG issues by the entities in which we invest”).

All ESG engagements with the stakeholders follow the Investee Engagement Guidelines (IEG), which, in turn, provide a detailed overview of EUROFIMA’s engagement approach, scope and principles of engagements, as well as individual responsibilities.

The EUROFIMA staff involved in its investment activities adhere to four main stewardship principles outlined in the IEG, which are:

	Principle 1: Monitoring the Treasury & Asset Management unit, with support from other internal units, will regularly monitor its investee companies
	Principle 2: Governance the objectives and practical aspects of ESG engagement form the Investee Engagement Guidelines document
	Principle 3: Transparency the Investee Engagement Guidelines, as well as relevant reporting on engagement results, will be made publicly available
	Principle 4: Best Practice the portfolio managers can and should consider collaborating with other asset managers/asset owners/investment consultants to learn about their best practices regarding their engagement process

The Investee Engagement Guidelines are effective as of 1 January 2022. The guidelines will be applied to 100% of EUROFIMA’s investments and all financial transactions with counterparties.

The Investee Engagements Handout (version April/May 2022) is a short and comprehensive document presenting an overview of the holistic approach EUROFIMA has adopted towards sustainability. It ourlines the past decisions, recent developments, and some learnings from experience so far.