Last year, we were able to increase the number of our commitments by 16.45% compared to the previous year, from 152 to 177. By increasing our influence on corporate decisions, we continue to set standards in responsible investing.

“Engagement is a key component of our sustainable, impact-oriented asset management. We focus on an active exchange in order to not only maximize returns, but also to make a positive contribution on the way to a more sustainable and ethically responsible corporate landscape,” says Dr. André Höck, Head of Sustainability and Strategy at EB-SIM, explaining the asset manager’s approach.

Successful engagement: sustainability through dialog

Höck cites the dialog with a leading German sporting goods manufacturer on the topics of deforestation and supply chain management as an outstanding example of EB-SIM’s commitment. In 2023, EB-SIM published a position paper against deforestation and began its engagement on this topic. The background to this was and is the alarming increase in global forest loss, particularly in tropical regions. In 2022, the loss of tropical primary forest amounted to 4.1 million hectares, which corresponded to an increase of 10 percent compared to the previous year and was equivalent to the loss of 11 soccer pitches per minute.

As part of this commitment, EB-SIM has entered into a dialog with the manufacturer to promote transparency and action in the area of deforestation-free supply chains. Following the dialog, the company published a roadmap with the goal of a completely deforestation-free cowhide supply chain by 2030 and increased its participation in industry-wide sustainability initiatives.

“This case is an example of how targeted dialogue from the investor side can contribute to making sustainability goals more concrete and improving disclosure,” says Höck. In the meantime, EB-SIM has presented further position papers on the topics of water and living wages.

Problem zone supervisory board: too few women and independence

If an investment is not successful, EB-SIM takes further measures. These can range from speaking at the Annual General Meeting of the company concerned to divestment of the company’s securities. In order to increase and diversify the impact of its commitments, EB-SIM works in conjunction with numerous associations. The asset manager is a member of Shareholders for Change (SfC) and the Arbeitskreis Kirchlicher Investoren (AKI). EB-SIM also participates in collaborative engagement campaigns run by ISS ESG and CDP.

In the funds initiated by EB-SIM, slightly more than half of the votes on motions against the management’s recommendation related to issues concerning the Management Board and Supervisory Board. These included the (re-)election of Supervisory Board members. In these cases, the insufficient representation of women on the Supervisory Board and excessive external mandates of members were exemplary reasons. In addition, there were failures to ensure the independence of the majority on the Supervisory Board and in the most important committees. The voting behavior reflects EB-SIM’s understanding that the Supervisory Board should be independent and diverse. In addition, the Board must have the necessary expertise to represent the interests of shareholders in the best possible way.

Social issues: One of the focal points in 2025

EB-SIM has set itself further ambitious goals for 2025. One focus will be on strengthening collaborative engagement. In particular, the asset manager wants to intensify its collaboration with Shareholders for Change on important ESG issues. In addition, EB-SIM will expand its individual commitments with a particular focus on social issues. Two areas that it wants to address specifically are living wages and modern slavery. The position paper “Living Wages. The importance of living wages” was published in March 2025.

“These issues are becoming increasingly important and have a significant impact on the sustainability of companies and their supply chains. Through targeted dialog and demands, we want to encourage companies to take greater responsibility and take concrete measures to improve working conditions and combat exploitative practices,” explains Höck.

Legal information:
This is a marketing communication and is directed exclusively at persons who are resident or ordinarily resident in Germany. The content is neither investment advice/recommendation nor an offer or advice to buy/sell the relevant fund. Likewise, the information does not constitute an investment strategy recommendation within the meaning of Section 85 WpHG. Information including notes on opportunities and risks as well as sustainability-related features can be found in the sales documents of the relevant funds at www.eb-sim.de.