Stockholm (NordSIP) – In 2024, Industriens Pension continued to focus strongly on active ownership as a tool for promoting responsible business practices in the companies it invests in.
According to the fund’s recently published annual report, Industriens Pension engaged in 1,171 dialogue processes with 651 publicly listed companies, throughout the year. These engagements took the form of direct conversations with company management and participation in general meetings, aiming to influence company behavior and long-term sustainability. As part of its active ownership strategy, Industriens Pension also voted on 20,301 shareholder proposals in 2024. These proposals spanned topics related to ESG, financial performance, and corporate governance.
“When watching the news these days, one might be tempted to ask whether there’s an adult in the room. All economic theory about comparative advantages and the benefits of trade seems to have been swept aside as a foundation for economic policy. The same feeling has emerged among us working with responsible investment. Everything from climate change to basic human rights is being challenged. Our core values are at stake, which is why work on responsible investment is more important than ever,” said Ann-Louise Winther, Head of Responsible Investments and Sustainable Development at Industriens Pension commenting on the report publication on LinkedIn (in Danish).
Active Ownership as the Preferred Strategy
Industriens Pension prioritizes dialogue over exclusion, seeking to improve corporate conduct through sustained engagement. However, the fund does exclude companies in cases where significant change is deemed unrealistic or when companies reject dialogue entirely.
“We fundamentally believe that active ownership is often the best way to make our influence felt. There are no easy and quick solutions, but often, active ownership in the form of persistent dialogue with company management and voting at general meetings can make a difference over time,” Winther commented.
For example, all coal mining companies remain excluded from the portfolio due to persistent problems relating to labor conditions and limited potential for sustainable transformation. Other companies, such as Tesla, Amazon, and Walmart, were excluded based on ongoing concerns over labor rights and lack of responsiveness to investor engagement.
Emphasis on Labor Rights and Climate
Out of the total dialogues conducted, 271 specifically addressed human and labor rights. These discussions focused on companies’ obligations to respect human rights across their value chains. Topics included freedom of association, fair working conditions, and digital rights, such as data privacy.
Meanwhile, 486 dialogues focused on climate-related concerns, especially targeting companies with large environmental footprints. These dialogues aimed to push companies—particularly in high-impact sectors like fossil fuels—to accelerate their climate transition plans. Some conversations were held in collaboration with other institutional investors to amplify their collective influence.
“Our dialogue with companies around the world thankfully gives us a good base to tackle the challenges ahead. We have constructive relationships with many companies that we can continue to build on—even when times are tough,” Winther added.
