Article Reproduced From ESG Clarity, 22nd February 2021
ESG Clarity, Expert Investor, International Adviser and Portfolio Adviser, the four core UK and European brands of Last Word Media, have banded together to launch a Campaign for Better Governance by investment professionals – and for the greater benefit of their businesses and those they serve.
At a time of unprecedented interest in ESG-oriented investing and following a period when companies’ treatment of all their stakeholders amid the global pandemic has been under intense scrutiny, we believe the investment sector should be practising what it preaches and ensuring that, alongside the businesses to which it allocates capital, its own governance is at the highest possible level.
In light of recent events, there has surely never been a better time to focus on the often-overlooked ‘G’ of ESG. Fund managers – particularly those who set out to invest responsibly – engage with investee companies on a regular basis and are well-placed to use their significant power as shareholders to encourage, or discourage, particular policies and behaviours. There has been a noticeable increase too in the number of engagement reports published by asset managers highlighting the might and influence they have on their investee companies.
We believe now is the time for the investment sector to shine a similar spotlight back on themselves and to ensure they too are continuing to operate for the greater good of their own stakeholders – the individuals who work for them, the businesses who work with them and, of course, all the people who entrust them with their savings.
As editors of publications that serve fund selectors, wealth managers and financial advisers across the UK and Europe, we feel it is our duty to encourage – and, where we are able, to help – businesses within the investment community to continue to strive for better corporate governance.
As part of our Campaign for Better Governance, therefore, we undertake to:
* Showcase examples of good governance through analytical articles and video interviews with key members of both the ‘buy’ and ‘sell’ side of the investment sector;
* Hold to account companies that fail to meet the levels of governance their stakeholders have the right to expect of them; and
* Publish a monthly newsletter offering coverage on governance inside and outside of the investment industry highlighting best practice and where there may be room for improvement.
We would very much welcome support for our campaign from individuals and businesses within the investment community and invite you to contact firstname.lastname@example.org should you wish to get involved.