Stockholm (NordSIP) – While the last five years saw sustainable institutional investors focus on discerning genuine green commitments from greenwashing, the tide has turned. In the face of constant attacks on ESG in the USA some companies have bucked under pressure and quietly hushed or rinsed away their sustainable policies. But the critics have not been satisfied and are now voicing renewed demands that even foreign companies comply with the Trump Administration‘s ban on Diversity, Equity and Inclusion (DEI) initiatives.
However, not all asset managers have caved under pressure. Some asset owners have taken notice of this and have begun adjusting their mandates. Now, Norwegian asset manager Storebrand has decided to stake its own position on this matter. Their view is categorical.
“The current spotlight on ESG highlights its complexities but also strengthens our view that investing sustainably is vital for a healthy planet, thriving society and the best long-term client results. We recently strengthened our climate policy and call on policymakers, corporates and the investment community to stand firm on their own social and environmental commitments,” says Jan Erik Saugestad, CEO, Storebrand Asset Management (Pictured).
Sorting the Wheat from the Chaff
Storebrand’s CEO doesn’t shy away from the greenhushing and greenrinsing that has taken place. “The backlash has spread beyond climate-related issues with US companies also scaling back DEI programmes in the face of political and legal pressure. Donald Trump issued a series of executive orders cutting federal initiatives that promote equal opportunities, for example, soon after his inauguration,” Saugestad notes.
“Large corporations, including big tech and Wall Street banks, have reversed commitments or targets, while others face lawsuits from government agencies and shareholders alleging that their policies are discriminatory or have led to financial underperformance. As with the climate coalitions, however, some businesses have doubled down on their DEI initiatives,” he adds.
“Our Position is Unchanged”
However, for Saugestad, the ongoing ESG backlash does not alter Storebrand’s view.
“Our position is unchanged. We maintain our investment principles and believe that tackling the underlying risks associated with ESG, such as climate change, biodiversity loss, social inequalities and the safeguarding of institutions and legal rights, is more important than ever. We continue to uphold our fiduciary duty and integrate ESG in our investment process in order to ensure effective risk management and returns for our clients. We will continue to engage with companies to help them improve, and challenge governments to ensure that the playing field for investors and corporates is aligned with sustainable development goals and pledges,” he explains.
“The current lack of political leadership is unfortunate, but we recognise that these issues are complex and contentious – ‘nothing worth having comes easy’ to paraphrase Roosevelt’s famous quote. We are among the long-term asset managers that see sustainability as an important factor in delivering their fiduciary duty and remain steadfast on both our approach and commitment,” Saugestad concludes.
