With sustainability a core topic for the investment community, the impact of Voting and Engagement is ever more apparent.
Investors are increasingly integrating Environmental, Social and Governance (ESG) considerations into investment decisions. These can be implemented in portfolios through either risk-focused negative selection approaches, such as exclusions based on international norms and controversial activities, as well as positive selection approaches. These aim to identify the best ESG performers not only in terms of minimizing risks, but also in terms of ESG opportunities and impact.
The buck does not stop here. Being a truly sustainable investor is not just about identifying and investing in the right issuers. What comes after is just as important.