Takeaways

• ABN AMRO drives sustainable change by engaging directly with companies to improve their ESG performance.
• The bank collaborates with partners to address key issues such as climate risk, AI ethics, and living wages.
• Through collective engagement, ABN AMRO promotes responsible innovation and long-term sustainability.

ABN AMRO is strengthening its commitment to responsible investment by actively engaging with companies in which its clients invest. The goal is clear: To drive sustainable business practices and encourage measurable progress on environmental, social, and governance (ESG) issues.

As an active shareholder, the bank works with various engagement partners to influence corporate behavior. These efforts form part of ABN AMRO’s broader strategy to promote sustainable investing, ensuring that companies not only perform well financially but also operate responsibly. Strategic decisions by a single company, such as cutting plastic use, addressing human rights risks, or reducing carbon emissions, can have far-reaching effects.

Read More: ABN Amro Sees Sharp Decline in ESG Bond Issuance

“We engage on a wide range of ESG topics. This year, our engagements focus mainly on urgent climate challenges,” says Martina Zhekova, Analyst for ESG & Sustainable Investing at ABN AMRO. The bank’s role varies from identifying critical issues and monitoring progress to conducting assessments and holding dialogues with company leadership.

Insights from the Stewardship Report

Details of these activities are shared in the Stewardship Report of ABN AMRO Investment Solutions (AAIS), the bank’s asset management arm. The report outlines engagement strategies and measurable outcomes across industries and regions.

Navigating AI Ethics

According to Margot Seeley, Head of ESG and Sustainable Investing at AAIS, the rapid rise of artificial intelligence (AI) presents both opportunities and ethical dilemmas. “In the technology sector, we are investigating the energy needs of AI-driven services. At the same time, the ethical aspects of AI also have our attention. AI adoption has taken off rapidly, but so have the stakes. We are seeing bias amplified through algorithms, discrimination automated at scale, and privacy invaded in ways we are only beginning to understand,” she explains.

In partnership with an American ESG asset manager, AAIS has initiated talks with major listed companies on establishing ethical AI governance principles. “We expect that the companies that lead with ethical AI will be the companies that determine what responsible innovation looks like in the future,” says Seeley.

Collective Engagement for Broader Impact

Collaboration is key to sustainable progress. ABN AMRO, through the Platform Living Wage Financials, a coalition of 22 financial institutions, has been engaging with major companies in the clothing and chocolate sectors to promote fair wages across global supply chains. These discussions have led to concrete steps, including the setting of clear targets and enhanced transparency.

“The engagement processes often take a long time, but can bring about change when large asset managers representing a significant portion of shareholders, work together,” says Zhekova.

Also Read: Driving Change: SSGA Rolls Out Sustainability-Focused Proxy Voting Framework

Both Seeley and Zhekova stress that engagement is more effective than exclusion. “If you exclude a company, you lose the opportunity to talk to management. Selling a stock or bond position is therefore often less effective in achieving sustainable change than engagement,” Zhekova adds. “Sustainable change happens through dialogue, not distance.”

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Source: ABN-AMRO