Category: Governance
Why the nature of investor-corporate discussion is key for successful outcomes Why the nature of investor-corporate discussion is key for successful outcomes Why the nature of investor-corporate discussion is key for successful outcomes
Jun 14th, 2021
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Investors increasingly engage their portfolio companies in conversations about their ESG expectations, encouraging them to improve their performance and practices, and the disclosure thereof. In fact, the use of engagement and voting has risen by double-digits in the last 10 years in Europe, becoming the second most important responsible investing strategy after stock exclusion. This builds on a growing consensus among scholars and practitioners on the positive effect of engagement between investors and companies. At the same time, regulations, such as the recent amendment to the EU’s Shareholder Rights Directive and the UK Stewardship Code further encourage asset owners and managers alike to exercise their shareholder rights. Engagement is therefore only expected to increase in popularity going forward.
Although the…