In a year marked by growing demands for transparency, accountability, and sustainability in institutional investing, LD Fonde has emerged as a standout leader in stewardship. Recognized as an Engagement and Stewardship Champion, LD Fonde’s commitment to responsible investment is not just policy—it’s practice, scale, and impact.
What drives LD Fonde’s stewardship philosophy?
At the heart of LD Fonde’s approach is its Policy for Responsible Investments, which guides every engagement, vote, and divestment decision. “We believe stewardship is not just about oversight—it’s about influence,” Kristoffer Birch, CIO from LD Fonde shared. “Our goal is to actively shape corporate behavior in ways that align with long-term value creation and societal progress.”
This philosophy translates into a robust framework that prioritizes dialogue with portfolio companies, exclusion of those that breach ethical norms, and strategic voting that emphasizes ESG risks and governance quality.
How does LD Fonde engage with companies to drive change?
Engagement is a cornerstone of LD Fonde’s strategy. In 2023 alone, the firm contributed dialogues with 434 companies, focusing on sustainability, labor rights, environmental performance, and governance. “Constructive engagement allows us to push for improvements while respecting the complexities each company faces.” LD Fonde shared.
LD Fonde also collaborates with ESG advisors and other institutional investors to amplify its voice and share insights. External data providers like Morningstar Sustainalytics help inform its decisions, ensuring that engagements are evidence-based and targeted.
What does LD Fonde’s voting activity reveal about its priorities?
LD Fonde’s voting record is a testament to its active ownership. In 2024, the firm voted on 11,763 proposals across 749 companies, with a strong focus on board composition, remuneration policies, and auditing standards. “We follow fixed criteria, but we also recognize when nuance is needed,” the team noted. For over 1,300 complex or contentious proposals, LD Fonde conducted individual assessments to ensure thoughtful decision-making.
The firm gives special priority to Danish companies, those with material ESG violations, and those that form a significant part of its portfolio. This targeted approach has led to measurable increases in both the scale and depth of its voting activity.
How does LD Fonde measure its impact?
LD Fonde’s stewardship efforts are not just visible—they’re quantifiable. In its 2023 Responsible Investment Report, the firm reported 12,650 votes cast at general meetings and a significant uptick in engagement dialogues. Among 42 pension companies, LD Fonde ranked 14th overall for ESG-related voting activity in 2024.
“Our benchmark shows strength in corporate governance and remuneration votes,” the team shared. “We’re proud of the progress, but we’re also focused on continuous improvement.”
This piece has been edited for length and clarity.
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