ISS ESG Quarterly Engagement Update – Q1 2025: High Engagement Intensity on Gender Equality, Human Rights, Water, and Biodiversity

Preamble

ISS ESG’s Quarterly Engagement Update series highlights key trends that emerge through activities conducted on behalf of participating investors under ISS ESG’s Collaborative Engagement ServicesCollaborative Engagement Services. These services allow investors to participate in cost-effective joint outreach and dialogue with companies on material sustainability-related themes.

The services also support global investor compliance and reporting requirements with regard to voluntary and statutory stewardship frameworks, including the Principles for Responsible Investment (PRI), the EU Sustainable Finance Disclosure Regulation (SFDR), the EU Shareholder Rights Directive II (SRD II), and stewardship codes across the globe.

The Collaborative Engagement Services leverage ISS ESG’s expertise, research, and data to identify key performance indicators for corporate ESG improvement and momentum that are aligned with recognized standards such as the United Nations Sustainable Development Goals (SDGs).

Through collaborative engagement, institutional investors can strengthen their focus on sustainability issues and effectively convey their concerns to investee company management. ISS ESG supports this process by facilitating engagement on behalf of participating clients, driving change through active ownership and constructive dialogue. Key areas of focus include enhancing disclosure, encouraging improved sustainability performance, and mitigating sustainability risks.

ISS ESG’s Collaborative Engagement Services consist of two elements:

• The ISS ESG Norm-Based Engagement SolutionNorm-Based Engagement Solution (formerly known as ‘Pooled Engagement’) is based on outreach to a select universe of upwards of 100 public companies annually. Companies are identified based on their involvement in alleged violations of human rights and labor rights and breaches of environment- and corruption-related recognized international standards, including the OECD Guidelines for Multinational Enterprises, the UN Global Compact, and the UN Guiding Principles on Business and Human Rights.
• The ISS ESG Thematic Engagement SolutionThematic Engagement Solution – launched in 2022 – prioritizes outreach to a select universe of 30-50 public companies per theme over a two-year or three-year engagement cycle. It focuses on companies identified as underperforming in the areas of Net Zero, Gender Equality, Water, and Biodiversity.

Collaborative Engagement Activity

In Q1 2025, ISS ESG facilitated engagement on behalf of signatory investors with a total of 157 companies across 196 topics. ISS ESG conducted engagements with 54 companies under Norm-Based Engagement, the Thematic Engagement solution facilitated engagement with 107 companies, and four companies were engaged with both solutions.

Table 1: Collaborative Engagement Activity, Q1 2025

Companies engaged with	Topics engaged on
157	196

Figure 1 showcases the distribution of engagement activities for Q1 2025. The engagement intensity was very high during the quarter, with 93 written responses received and 15 engagement meetings conducted on behalf of investors.

Figure 1: Distribution of Engagement Activities, Q1 2025

The companies engaged with are spread out globally, with domiciles in North America (38%); Europe, the Middle East, and Africa (EMEA) (29%); Asia-Pacific (APAC) (30%); and Latin America (3%).

Figure 2: Regional Distribution

The most engaged countries were the United States in North America; Japan, China, and India in APAC; and Switzerland and the United Kingdom in EMEA.

Figure 3: Geographic Distribution

Across the 196 topics that ISS ESG facilitated engagement on during Q1 2025, Environment topics (49%) and Social topics (48%) were well balanced, while 3% of the topics concerned the Governance pillar.

Figure 4: Sustainability Areas Breakdown

A detailed analysis of the sustainability topics breakdown reveals that, among the Environment-related engagements facilitated by ISS ESG in Q1 2025, the most frequently discussed topics were Water, Biodiversity, and the violation of Environment Norms. Within the area of Environment Norms, the most common sub-topics focused on controversies related to pollution and biodiversity.

Among Social topics, most of the engagements focused on Gender Equality, followed closely by the violation of Human Rights Norms. In the area of Human Rights Norms, the most common sub-topics included controversies related to consumer rights, indigenous rights, and consumer privacy. Within Labor Rights Norms, the most frequently discussed issues were forced labor, as well as workplace health and safety.

Figure 5: Sustainability Topics Breakdown

The topics that ISS ESG facilitated collaborative engagement on in Q1 2025 covered 13 of the UN Sustainable Development Goals (SDGs). Reflecting the launch of ISS ESG’s second Thematic Engagement cycles on Gender Equality, Water, and Biodiversity in Q4 2024, the most frequently addressed SDGs were SDG 15: Life on Land, followed by SDG 6: Clean Water and Sanitation, and SDG 5: Gender Equality.

Figure 6: SDG Breakdown

Future Action

For over a decade, a mix of soft and hard law initiatives, coupled with growing investor demand, has driven the global expansion of active ownership practices—particularly engagement. These trends have fostered more standardized frameworks for investment stewardship, enabling investors to seek meaningful change in the companies they invest in. The most recent development in this area is the publication on June 3, 2025, of the UK Stewardship Code 2026UK Stewardship Code 2026.

ISS ESG’s Collaborative Engagement ServicesCollaborative Engagement Services, including  Norm-Based EngagementNorm-Based Engagement and the Thematic Engagement SolutionThematic Engagement Solution, are available to support investors in this important area of their stewardship practice. In Q4 2024 ISS ESG launched the second cycle of the Biodiversity, Water, and Gender Equality Thematic Engagement services.

ISS ESG has also published a range of Thought Leadership material covering ESG engagement, including Stewardship Excellence: Engagement in 2021Stewardship Excellence: Engagement in 2021 and Sustainability Engagement in the Asia Pacific: A Look Back Over the Past DecadeSustainability Engagement in the Asia Pacific: A Look Back Over the Past Decade. ISS ESG Engagement Managers have also shared insights on corporate engagement in several webinars and articles on themes such as Net Zero, Water, Biodiversity, Gender Diversity, and Modern Slavery, including an April 2024 webinar dedicated to Key Trends in ESG EngagementApril 2024 webinar dedicated to Key Trends in ESG Engagement and the article “Terms of Engagement: Investor Challenges on the Road to Net ZeroTerms of Engagement: Investor Challenges on the Road to Net Zero.”

Explore ISS ESG solutions mentioned in this report

• Develop engagementengagement strategies, define achievable engagement objectives, and manage your engagement process with ISS ESG’s Norm-Based Engagement SolutionNorm-Based Engagement Solution and Thematic Engagement SolutionThematic Engagement Solution.