Environmental, social and governance issues also an investor issue
Research into ESG issues for an SA-based asset manager shows shareholder activism can be very effective in improving selected ESG policies
Growing numbers of institutional investors across the world are actively integrating environmental, social and corporate governance (ESG) considerations into their investment analyses and ownership practices. Different mechanisms are available to activist investors to hold boards of investee companies accountable for their actions.
Public voice mechanisms include filing shareholder resolutions, voting and raising concerns in public via traditional and/or social media. Most investors in SA, however, prefer to engage investee companies in private. As private engagements are generally confidential, very little academic research has been undertaken to determine its effectiveness in transforming selected corporate policies and practices...
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