Empowering Investors Through Active Ownership in ESG

Active ownership is an energetic approach of ESG investing in which investors use their power of shareholders to affect corporate behavior and introduce a range of more sustainable practices. This method enables participating in dialogues with the companies over ESG issues, voting rights, as well as participation in shareholder resolutions.

What is Active Ownership?

Active ownership involves being actively involved with the companies to influence improvement in their ESG performance. These may include proxy votes, discussion with the management, and shareholder resolutions. This will further push investors towards a better change and increase corporate sustainability.

Major Elements of Active Ownership

Engagement: The main characteristic of active ownership is the engagement of investors in meaningful dialogues with the company management over the ESG issues, thereby convincing the companies towards better practices.

Voting Rights: Make decisions affecting corporate actions and policies through the use of voting rights in share holders' meetings.

Shareholder Resolutions: Propose and vote for resolutions that promote ESG objectives, holding companies accountable.

Transparency: Demand more transparency regarding investee companies' ESG practices and performance through the active ownership route.
Why Should It Matter?

Active ownership is considered one of the most powerful mechanisms through which to reduce risks from ESG factors, maximize returns, and contribute positively to society and the environment. It makes investors an integral part of driving improvement in corporate behavior toward the achievement of a more sustainable future.