Creating long-term value for the Fund's participants, retirees and beneficiaries entails numerous activities, one of which is engagement. As our newly published engagement report details, this pillar of our Responsible Investment strategy comprises three forms of dialogue with issuers:
Internal direct engagement: Dialogues led by UNJSPF investment teams, focused on sector-specific environmental, social and governance (ESG) and financial issues, and by the Responsible Investment team, focused on high-emitting companies.
Collaborative engagement: Conducted alongside peer investors via coalitions such as Climate Action 100+, Nature Action 100, FAIRR and Climate Engagement Canada.
EOS-led engagement: Structured dialogues led by Federated Hermes EOS, following UNJSPF engagement policy guidelines.
“Our voice as one of the world’s largest asset owners is a powerful tool for creating long-term value and sustainability. We can’t do it alone, and we encourage other asset owners to join us in continuously pushing for improved practices,” said Toru Shindo, Chief Investment Officer and Acting Representative of the Secretary-General.
The UNJSPF’s engagement scope with Federated Hermes EOS covers four categories, each with three themes, as shown in the table below. In 2024, EOS engaged 655 companies on the Fund’s behalf.
Category
Themes
Environmental
Climate change action
Circular economy and zero pollution
Natural resource stewardship
Social
Human capital
Human and labor rights
Wider societal impacts
Governance
Board effectiveness
Executive remuneration
Investor protection and rights
Strategy, risk and communication
Risk management
Corporate reporting
Business purpose, strategy and policies
Environmental was the most commonly engaged category by EOS on the Fund’s behalf in 2024.
The UNJSPF maps its engagement activities to the SDGs, as shown below. Notably, SDG 7, “Affordable and clean energy”, and SDG 2, “Zero Hunger”, each more than doubled relative to 2023 in terms of their prominence. This reflects the importance to the UNJSPF of the transition of energy and food systems to a low-carbon economy, given their importance to the Fund achieving its climate targets and commitments.
Regarding collaborative engagement, highlights include participation with Climate Action 100+, Nature Action 100, FAIRR Initiative and Climate Engagement Canada. The newly issued report contains more details, including public policy highlights and several case studies.
