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Towards a Model of Enlightened Stewardship

Chris Hall

Here, stewardship codes can play a vital role in addressing these different types of relationships to help shape modern expectations on institutional investors. These codes provide guidance and expectations on investors’ engagement with investee companies and other stakeholders to promote long-term value.

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Europe’s Next Big Step

Chris Hall

Supervisory authority ESMA is calling for EU-wide stewardship code to hone and standardise investors’ engagement efforts and disclosures. There’s also the stewardship code introduced by the European Fund and Asset Management Association (EFAMA), which was first adopted in 2011.

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Take Five: Ready to Engage

Chris Hall

Proposals to bolster sustainable finance in Europe include recommendations for a new region-wide stewardship code. Hungry for change – With six years to go, UN Sustainable Development Goal (SDG) 2 – which aims to end hunger, achieve food security and improve nutrition – is back to square one, at best. Finance is an issue.

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Take Five: The Waiting is Almost Over

Chris Hall

With the Swiss Re Institute naming the US as the second hardest-hit country by climate change globally in terms of annual economic losses, firms across the country have plenty of incentives to address this material risk. Done deal? – Evolution or revolution?

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An Increasing Sense of Urgency

Chris Hall

According to figures published by The Global Sustainable Investment Alliance in 2021, Japan’s total sustainably invested assets stood at US$42,874 billion in 2020, representing a more than fivefold increase from 2016. These long-held principles of sustainability have filtered down to the world of investment. Significant progress.

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Managers not Committing to “Most Impactful” Stewardship Measures

Chris Hall

Despite strong progress by asset managers on stewardship since 2020, voting data disclosure and new policies “are not being matched by real-world action”, reports ShareAction. Regarding stewardship, ShareAction found high levels of transparency across voting and engagement, but noted gaps in key areas.

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ESG Overload 

Chris Hall

This was followed in 2010 by high level reporting for the Financial Reporting Council’s (FRC) original Stewardship Code. Despite both being voluntary, they quickly became industry norms, along with a minority of asset owners starting to do voluntary Task Force on Climate-related Financial Disclosures (TCFD ) reporting in 2019/20.