Last year, we joined 86 engagement initiatives with ISS ESG, supported 46 engagement activities through the Working Group of Church Investors (AKI), and took the lead on engagement efforts at four companies as part of the CDP Non-Disclosure Campaign. In addition, we initiated nine independent dialogues on the topics of living wages and the human rights of migrant workers. We exercised voting rights at 204 annual shareholder meetings, casting at least one vote against management at 151 of them.

In the Real Assets segment, we strategically expanded our portfolio to include wind and solar farms, a large-scale battery storage facility, and an impact fund for church-owned properties. This underscores our commitment to a holistic approach as a responsible investor.

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  We manage 100 % sustainable investment solutions

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  We’ve been talking about 35 years Experience in sustainable investing

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  We manage 10 Impact Funds

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  We also take into account 100 % The UN SDGs in Our Funds

Why are we an active investor?

Engagement is an essential component of our sustainable, impact-oriented asset management. Through targeted dialogue with companies and the exercise of voting rights at annual shareholder meetings, we are able to exert direct influence on companies’ sustainability practices. This enables us to make an active contribution to the transition toward more sustainable business practices.

Our Rating System for Engagements

We conduct thematic and issue-based engagements either independently or in collaboration with other investors. To further enhance the transparency and consistency of our engagement reporting, we have aligned our internal process for evaluating engagements with the methodology of the Shareholders for Change investor network, of which EB-SIM is a member. The primary purpose of this methodology is to document the progress made in an engagement process and to evaluate the outcome of the dialogue with companies.

The methodology is based on the assumption that engagements can generally serve two different purposes. Depending on their focus, engagements can be classified as action-oriented or information-oriented.

A scale from A to E is used to evaluate engagement results. A represents the best result, and E represents the lowest level of engagement. A detailed description of our engagement process can be found here.

Collaborative Engagement

When multiple investors pool their votes and demands in a joint effort, they can collectively take a stronger stance toward the company. That is why we participate in collectively coordinated initiatives. We are currently working with Shareholders for Change, ISS ESG, CDP, and the Working Group of Church Investors (AKI).

Partnership with Shareholders for Change

Shareholders for Change is a renowned network of European institutional investors founded in 2017. Its 19 current members manage a total of 45 billion euros. In 2025, SfC members conducted a total of 258 engagement activities with 223 companies and one institution, focusing on climate and the environment, human rights/labor rights, and ESG policies. The majority of the companies engaged were based in Europe, followed by the U.S., with a focus on the consumer goods, banking/finance, and capital goods sectors. The Shareholders for Change Report 2025 can be found here.

As part of our membership, we collaborated with the network on two key advocacy initiatives in 2025. In June, together with the Ethos Foundation, we participated in a side event organized by the Interfaith Center on Corporate Responsibility as part of the 113. International Labour Conference in Geneva, which focused on the draft of an ILO convention on decent work in the platform economy. Together with representatives from 28 countries, we discussed fair working conditions, the protection of migrant workers, and the role of investors in strengthening international labor standards.

In addition, as part of the ICCR Case Conference 2025, we joined forces with Shareholders for Change to support the Investor Statement on Autonomous Weapons Systems presented by Etica Funds and Stop Killer Robots. Through our support, we are sending a clear message against the use of autonomous weapons systems and calling for binding international regulation. Both initiatives underscore our holistic advocacy approach: Together with strong partners, we advocate for decent working conditions, the protection of fundamental human rights, and clear ethical guidelines for new technologies.

Partnership with ISS ESG

We participate in collaborative, standards-based engagement with ISS ESG. This enables us to respond to controversies together with other investors. Among other things, this involves engaging with companies implicated in alleged or proven serious violations of international standards.

In 2025, we engaged in 86 new dialogues with 61 companies. The majority of these dialogues were with companies headquartered in North America, followed by Europe and Asia. Three of the controversies addressed had global implications, while the rest were regional in nature. Most controversies occurred in North America. This was followed by controversies in Europe and Latin America. The greatest impact of the engagements was achieved in the area of remedial measures, followed by the implementation of policies and the disclosure of relevant information.

Partnership with CDP

Last year, we once again participated in CDP’s“Non-Disclosure” Campaign (NDC). To achieve a net-zero future, it is essential that companies disclose the environmental impacts of their operations and provide full transparency regarding their plans and progress toward environmental sustainability. CDP therefore calls on companies to make key disclosures. A total of 223 signatories, representing nearly 23 trillion U.S. dollars in assets under management, participated in the 2025 Non-Disclosure Campaign.

The campaign targeted 1,314 companies. In 2025, 918 companies were asked to disclose information on climate change, 306 companies were asked to disclose information on forests, and 711 companies were asked to disclose information on water. In 2025, we took the lead on engagement with four companies as part of the NDC and contacted the companies directly to encourage them to publish data on water.

Collaboration with the AKI

The Evangelische Bank Group is a founding member of the Working Group of Church Investors (Arbeitskreis Kirchlicher Investoren, short: AKI) in the Evangelical Church in Germany. The AKI promotes the exchange of knowledge on ethically sustainable investments and coordinates corporate dialogues among church investors.

The engagement efforts focus on companies listed on the DAX and MDAX, with the goal of driving improvements in social and environmental issues. In 2025, a total of 46 engagement activities were carried out with 41 companies, supported by the EB Group.

Voting

In addition to dialogue-based engagement, voting is an extremely important tool for transforming companies and making the entire economy more sustainable. For example, we have supported proposals aimed at increasing a company’s sustainability, improving corporate governance structures, or strengthening shareholder rights. The goal of ensuring that companies operate sustainably over the long term is always at the forefront.

When exercising shareholder rights, the asset management companies for the publicly offered funds initiated by EB-SIM rely on the services of Glass Lewis, an internationally active proxy advisory firm. Last year, votes were cast on behalf of the mutual funds at 204 annual shareholder meetings of 194 companies. At 151 of these meetings, at least one vote was cast against management’s recommendation in order to drive sustainable transformation.[1] The number of proposals voted on was 3,122. For 500 of these proposals, votes were cast against management’s recommendation. The most common topics across all proposals related to the board of directors, compensation, auditing and finance, and capital allocation.

Self-Initiated Projects

In addition to collaborative advocacy, we also carry out advocacy initiatives on our own. In doing so, we act independently of investor groups or advocacy initiatives. Last year, we focused our efforts on three specific areas: living wages, the human rights of migrant workers, and the reduction of packaging waste.

Regarding “Living Wages,” we engaged in dialogue with three companies, all of which responded to our inquiry. Regarding “Human Rights of Migrant Workers,” we contacted six companies. Five of them got back to us and participated in calls.

Commitments to Living Wages

Less than 4% of the 2,000 most influential companies pay their employees a living wage. According to estimates, about one-third of workers worldwide earn less than what is necessary for a decent standard of living. Furthermore, in about 82% of countries, the statutory minimum wage is below the level of a living wage. The persistent global gap between actual wages and a living wage has far-reaching negative consequences for society and the economy. That is why we continued our commitment to living wages in 2025. Our position paper on this topic can be found here.

Case Study: Progress on Living Wages in Carrefour’s Supply Chain

Our engagement with a French retail chain (Carrefour) was aimed at persuading the company to make a clear commitment to living wages that also extends throughout its entire supply chain.

A key milestone in this initiative is the launch of a pilot project on wage analysis in France, which is to be gradually expanded to all countries where the Group operates. By 2026, the Group also aims to establish partnerships with 50,000 producers in sustainable, high-quality segments, with fair trade practices and social audits serving as key drivers.

Efforts to Promote Human Rights for Migrant Workers

Migrant labor is a central component of the globalized economy. According to a 2024 report by the International Labor Organization (ILO), there were approximately 285 million migrants worldwide in 2022, of whom about 245 million were of working age. A total of 168 million people were counted as migrant workers, representing about five percent of the global labor force. Despite their economic importance, migrant workers often face structural risks. Low wages, long working hours, inadequate occupational safety measures, or restricted freedom of movement can lead to particularly precarious working conditions. In some cases, these working conditions exhibit characteristics of modern slavery, such as forced labor or other forms of systematic exploitation.

This issue is highly relevant for investors. Human rights violations related to migrant labor can pose significant risks to companies, including reputational damage, legal consequences, disruptions to supply chains, or financial burdens. At the same time, regulatory authorities, investors, and the public increasingly expect companies to identify and effectively address human rights risks along their value chains. Our position paper on this topic can be found here.

As a sustainable investor, we categorically reject any form of human rights violation. That is why we launched this engagement campaign.

Case Study: Clear Standards Against Modern Slavery at Fortescue

As part of our analysis of an Australian commodities company (Fortescue), we assessed its existing frameworks regarding human rights and modern slavery. However, given the company’s sectoral and geographic exposure, we identified a greater need for clearer, measurable objectives.

In fiscal year 2025, all measures announced during the dialogue were implemented and disclosed. In addition, the company developed a FY25 Sustainable Procurement Map for High-Risk Sourcing to identify high-risk procurement categories. At the same time, a review was conducted to protect migrant workers and mitigate recruitment-related risks, in collaboration with, among others, the Business & Human Rights Resource Centre and the NGO Equidem.

In addition, the company identified 120 high-risk Tier 1 suppliers and systematically integrated modern slavery risks into its risk management framework. We view the introduction of a new KPI to track ILO indicators for forced labor along the operational and supply chains as particularly positive. Another measure was the organization of a “Human Rights and Energy” roundtable, which the company hosted in collaboration with Australia’s first Anti-Slavery Commissioner, thereby strengthening cross-sector dialogue.

Community Engagement Seminar with the University of Kassel

As an objective source of inspiration, science plays an important role in the continuous development of our products and investment processes. In 2025, we further expanded our collaboration with the University of Kassel. Since October of last year, we have been jointly offering the master’s seminar “Special Topics in Sustainable Finance: Investor Engagement,” which runs through March 2026. In this seminar, we share our practical experience in sustainable asset management and provide students with hands-on insight into the role of active investors in promoting sustainable corporate practices.

Packaging waste is a growing environmental problem worldwide, with significant ecological and social consequences. Globally, approximately 225 million metric tons of plastic waste are generated annually, which amounts to about 28 kilograms per person. About one-third of this waste (just under 70 million metric tons) is disposed of in an uncontrolled manner and ultimately ends up in the environment. At the same time, regulatory developments are increasing the pressure on companies to take action. The new EU “Packaging and Packaging Waste Regulation (PPWR),” which has been in effect since February 2025, has established a new framework for the management of packaging. Our position paper on this topic can be found here. Against this backdrop, we made packaging waste the focus of an engagement campaign as part of the seminar.

Based on this work, engagement letters were sent to several companies. So far, four internationally active companies in the consumer goods industry have agreed to engage in dialogue. In April 2026, the students will also have the opportunity to participate as observers in selected engagement discussions, thereby gaining direct insight into the exchange between investors and companies.

Through our engagement efforts, we aim to help drive positive change and support companies in reducing packaging volumes, increasing recyclability, and further developing circular business models. More information about the engagement seminar and practical insights from the investor dialogue can be found here.

Conclusion

For the coming year, we have set ambitious goals to further intensify our sustainability efforts and expand our influence as a responsible investor. Our goal is to invest for a better world. Through our stewardship approach, which includes corporate dialogue and the exercise of voting rights, we aim to achieve a positive environmental and social impact. In this way, we consistently put the impact component of our WIW conceptinto practice. Together with our customers, we want to make this positive contribution to people and nature.

[1] In exceptional cases, discrepancies occasionally arose in the voting results of individual mutual funds. In such situations, the vote of the fund holding the greater number of voting rights was taken into account for the aggregated analysis.