“AvH has the ambition to be part of the solution for various ESG-related challenges that the world is facing.” John-Eric Bertrand, co-CEO
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Materiality analysis
In 2019, AvH performed an analysis to determine its material ESG risks and opportunities. The materiality matrix revealed four themes that have a great impact on the group’s business and at the same time are rated highly by the stakeholders.
- Responsible shareholding: interaction with the participations to increase the ESG impact
- Business ethics: compliance with the applicable laws and regulations (including the legal framework in the matter of anti-corruption), internal guidelines, group values such as human rights, integrity, partnership, teamwork, independence, entrepreneurship, sustainability and long-term vision
- Corporate governance: organized control and monitoring of the strategy being pursued
- Solvency and long-term return: focus on financially sustainable business models with appropriate balance sheet structures
Principles for responsible investment
AvH intends to implement the Principles for Responsible Investment (UN PRI), the framework of the United Nations that works on a more sustainable financial system, from 2020 onwards in order to support the ESG aspects in its relations with the participations. AvH was already inspired by this when drawing up this annual report for the 2019 financial year.
AvH as an investment company
The corporate values that AvH has held in high esteem since its inception in 1876 are a long-term vision, entrepreneurial spirit, integrity, partnership, sustainability, respect, independence and teamwork. Sustainable growth is thereby paramount, with attention being paid to a strong competitive position and long-term profitability. AvH thereby also positions itself as a sustainable investor.
AvH as a responsible shareholder
AvH considers its role as a responsible shareholder as one of its most important levers in the context of its ESG policy. This is in line with the objectives of SDG 16, which supervise good governance.
AvH has analysed its portfolio of participations on the basis of various parameters that may indicate a potentially material ESG impact for AvH. Examples of this are the relative investment value in relation to all the assets that AvH manages, whether or not they are listed on the stock exchange, or special attention by stakeholders to a specific problem or company. Based on this analysis, DEME, CFE, Delen Private Bank, Bank J.Van Breda & C° and SIPEF are considered to be material for AvH.
Community and culture
Ackermans & van Haaren has been supporting projects of a scientific and socio-cultural nature, which ideally have a link with the Antwerp region. If it is meaningful and possible, AvH thereby aims to build a long-term relationship with the partners. After all, sustainability and cooperation are strongly intertwined in the DNA of the group!
As a diversified investment company, AvH operates a business model of sustainable growth, as illustrated in its baseline ‘Your partner for sustainable growth’. AvH aims to develop high-performing market leaders with resilient and sustainable business models that respect social and environmental aspects throughout economic cycles. AvH does so by focusing on 4 material topics, i.e. ‘Responsible Shareholder’, ‘Climate Change’, ‘Energy Transition’ and ‘Talent Management’.
As an investment company, being a ‘Responsible shareholder’ is essential for long-term value creation both at the level of individual companies and of the overall portfolio. This philosophy is anchored in two roles: AvH as a responsible investor and a long-term, active partner. AvH integrates sustainability topics into its responsible investment policy and its engagement with group companies to achieve sustainable business models over the long-term. This approach helps to navigate the modern business environment with respect for society and the environment. AvH is also formally a member of the UN PRI initiative, and the principles of UN PRI in the area of responsible investment are applied.
‘Climate change mitigation’ is material for AvH, as GHG emissions may significantly impact negatively future results due to the financial impact of upcoming carbon taxes. AvH is committed to implement GHG reduction plans for the companies in its investment portfolio, targeting a reduction plan for over 80% of its AuM by the end of 2025 with a view towards 2030. AvH’s group companies also have significant potential to make a positive impact on climate change. AvH’s strong EU Taxonomy alignment underscores this positive impact. The AvH group stands out by the substantial portion of its turnover (34%) and capex (38%) that are already aligned with this framework.
The ‘Energy transition’ is crucial for reducing GHG emissions, combating climate change and ensuring a sustainable future. Transitioning from fossil fuels to renewable and clean energy sources seems essential for meeting the Paris Agreement goals and other climate commitments. This transition not only addresses environmental concerns but also stimulates economic growth and enhances energy independence. A new target has been set for 2025, for 80% of AvH’s AuM to have a plan, to assess meaningful actions by the end of 2025 to support the energy transition.
AvH NV and its group companies require strong, agile teams to navigate current and future challenges. Attracting and retaining talent with the right skills and mindsets is essential, emphasizing the importance of ‘Talent management’ as a material topic for the group. This focus encompasses AvH NV as well as the workforce in the group companies. By the end of 2025 at least 80% of AvH’s AuM should have a business-relevant talent strategy.
AvH remains committed to continuous improvement and making a meaningful impact on its journey towards sustainability and resilience. By setting ambitious but still realistic goals, AvH aims to avoid greenwashing and focuses on year-on-year progress with buy-in from its group companies. This approach is appreciated by many stakeholders and ensures that ESG visions are embedded within the company strategy, governance and processes at all levels.
