Does investor engagement deliver corporate change?
Around £300 billion of equities are now managed on a socially responsible basis in the UK. Many investment managers, including Insight, deliver their commitments to being a responsible investor through, among other things, proactive engagement with companies. Our rationale is that regular, constructive engagement can deliver substantial change in the way companies manage their key social and environmental impacts and risks, thus protecting and enhancing shareholder value. However, some observers have quite rightly questioned whether such engagement actually drives corporate change.
Over the last three years, Insight has been working hard to try to answer this question. We have developed and tested engagement tools that allow us to demonstrate clear results: systematic and significant improvement in companies’ management of governance, social, ethical and environmental issues.
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