australiaen
Sustainable Investing Glossary

Engagement

A long-term active dialogue between investors and companies on environmental, social and governance factors.

An active dialogue offers investors the opportunity to discuss sustainability risks and opportunities with companies and provides them with insights into investors’ expectations of corporate behavior. This way, investors encourage companies to adopt more sustainable practices. Companies with sustainable business practices can create a competitive advantage and are more likely to be successful over the long run, ultimately improving the risk/return profile of their securities. Effective engagement can therefore benefit companies, investors and society at large. 

Engagement typically runs over a three-year period, during which the engagement specialists have regular contact with company representatives and track progress against engagement objectives. Often they combine their efforts in collaborative engagement initiatives with other institutional investors. The outcome of the engagement efforts is communicated to analysts, portfolio managers and clients, enabling them to incorporate this information into their investment decisions.

Creating returns that benefit the world we live in
Creating returns that benefit the world we live in
Sustainable investing
Social impacts of AI and gaming lead Active Ownership Q4 report
Social impacts of AI and gaming lead Active Ownership Q4 report
Technology can be a wonderful enhancement to our lives – and also a danger to health and security.
27-01-2023 | Active Ownership Report
SI Dilemma: How important are SI badges?
SI Dilemma: How important are SI badges?
Would an asset manager dare to turn down a sustainability badge?
26-01-2023 | News
SI Outlook & Engagement Themes for 2023
SI Outlook & Engagement Themes for 2023
The focus on sustainable investment has never been greater as we look for solutions to the challenges facing humanity.
19-01-2023 | Webinar