For asset owners and managers, sustainable long-term investing has evolved from divestment to active ownership strategies that foster better business practices.
Australia’s second largest superannuation fund will only divest as a last resort, saying its better to work with, rather than against, those companies with ESG risks.
Japan's largest life insurer has made more than 90% of its carbon-heavy investees disclose their greenhouse gas reduction targets through active engagement.
As the concept of engagement continues to spread, asset owners need to decide how far they are prepared to push recalcitrant companies.
For Australia’s second-largest super fund, it’s a case of get green or get out, but engagement and collaboration is still the preferred solution.
Low interest rates and rampant liquidity are offering companies more financing sources – and limiting the ability of ESG-conscious investors to influence them via divestment.