Active Ownership means engaging with a Company by virtue of shareholdings to influence corporate strategy and behaviors. It is a practical method for shareholders to help increase the economic value of their investments, and to help drive an alignment of an investor’s values with their assets. Andy Behar, CEO of As You Sow, Paula Luff, Director of ESG Research and Engagement at DSC Meridian Capital, and Yusuf George, Managing Director at Engine No.1, joined our Chief Impact Officer, Erika Karp, for a conversation on how shareholders can successfully act as stewards of capital.
Key takeaways from the discussion are highlighted below. Please also see the resources listed at the bottom for links to other sources of information Andy, Paula, and Yusuf cited during the webinar. To access the video replay, click here.
- Shareholder advocacy can be very powerful for both small and large investors who seek to leverage their power and often form coalitions.
- In some cases, economic issues in the realm of environmental, social, and governance ESG factors, come to the fore as they relate to company operations.
- The most useful and effective economic argument for shareholder activism addresses three questions:
- Is the business rooted in sustainable practices?
- Are these practices driving long-term price performance?
- And is management on board?