Learn about the factors that influenced a significant growth in the adoption of responsible investment approaches and allowed investor engagement to reach maturity.
“Over the two decades we have run an ESG engagement programme, we have seen more and more companies come to the realisation that if they work together with investors, both sides can reap the benefits in terms of long-term performance.”
Juan Salazar, Director, Responsible Investment
Expressing concerns collectively with other investors can help get companies’ attention.
Voting against management on key resolutions sends a clear signal to companies and might help with further engagement efforts.
AGMs offer the opportunity for direct, public dialogue with boards and top executives. Interventions at AGMs can also trigger further dialogue with a company, paving the way to more in-depth engagement on an issue.
These can be a key rallying point of an engagement campaign to change companies’ behaviour. We will typically support requests to improve board accountability, executive pay practices, ESG-related disclosure and climate change action where we agree with both the issue highlighted as well as the implementation proposed.
|Asia (ex Japan)||4,085||16%|
|Board director(s), non-executives(s)||3,205||30%|
Collaborative engagement action came of age in the 2010s as investors recognised and experienced its benefits. A unified voice helps investors communicate their concerns whilst gaining power and legitimacy from the perspective of corporate management.
Whilst equities remain the most common asset class to apply an engagement approach to, the past decade saw rapid development of engagement elsewhere, including fixed income, private equity and real estate. Investor engagement also began to spread beyond developed markets as major investors increasingly recognised that these countries are highly exposed to ESG-related issues, such as climate change and corruption.