Engagement
Engagement is of great importance for EAM‘s sustainable investment approach. It combines
own initiatives with collaboration on a national and international level. The structured
engagement process is based on the „EAM Engagement Guideline“ which determines
engagement issues, approach and procedures.
Partners and Sponsors of FIFA
Every four years the FIFA World Cup Final comes to another country, moving the masses and enriching the
companies involved. The protests of the population against the ESG infringements of both the respective host
country and FIFA leave a dubious aftertaste in the wake of the event. Critical issues are expensive buildings with
limited purposes (see also the editorial).
In Rio de Janeiro Continental supports
the education project UERE. Children
and adolescents from the urban favelas
are taught with the help of e-learning
methods and are given football
equipment.
In the run-up to the World Cup Final 2014 Erste Asset Management wanted to know from partners and sponsors
how they saw the approach of FIFA and whether there was any chance to organise large sports events in a more
sustainable fashion. We contacted all partners and sponsors for the World Cup Final 2014, but a large number of
companies that we got in touch with, for example Johnson & Johnson, made it clear right from the start that they
would not comment on this issue. Extensive engagement activities were possible with Adidas, Continental, and Sony.
Only Adidas, Continental and Sony dareto enter the engagement process
The questions Erste Asset Management asked covered a broad range of items, from the rationale behind the
partnership to social projects in the World Cup countries and the chance of a more sustainable championship.
All companies wanted to use their involvement to turn football into a more popular and “accessible” sport. Only
Continental was refreshingly honest, pointing out that at the end of the day it was all about boosting the popularity
of the brand and increasing sales. The companies did not want to answer the question how they viewed the
protests, all the while referring to their internal guidelines. Adidas and Continental did not feel directly responsible
and basically regard FIFA and the government as contact to discuss the sustainability of such events. However, our
contacts at Continental also explained that they would endorse adequate (i.e. work etc) standards for companies
participating in large events.
The direct support of the country is of crucial relevance to the partners and sponsors of the World Cup Final.
Every involved company that we have spoken with tries to support the society in the host country. A large number
of social projects for children to promote sports and education have been launched.
Status:
During this engagement we have come to realise that it is important to enter into a more extensive dialogue with
all stakeholders. Therefore EAM wants to cooperate with the engagement expert GES in setting up an investor
circle. This circle will pursue periodical engagement activities that are not only based on the World Cup Final, but
on all large sporting events and their sponsors.
(Richard Boulanger)
