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Bailey McCann, Opalesque New York: For asset managers interested in sustainable investing, taking an activist role is becoming more common according to a new report from Schroders.
The Schroders Institutional Investor Study 2020 includes data from 650 institutional investors representing $25.9 trillion in assets.
According to the findings, 62% of North American institutions said active company engagement and stewardship was a key approach to integrating sustainability. That number is up from 44% a year ago. North American investors are also looking for "best in class" sustainable investment opportunities. 62% of investors said that best in class companies were important, up from 38% last year. In contrast, those that opted for an exclusionary approach fell by the same margin to 30% from 51%.
The results suggest that engagement and voting are now increasingly being viewed as an important aspect of achieving change, rather than simply divesting. Investors said that transparent reporting, tangible outcomes and consistently voting against companies in order to drive change were the three key signs of successful engagement.
"Active ownership has become more important than ever. Investors have a duty to hold companies accountable and an opportunity to drive positive change," said Elly Irving, Head of Engagement at Schroders.
Currently, the primary focus among investors is on corporate strategy. Respondents suggested that governments and inter-governmental ...................... To view our full article Click here
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