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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
Energy and supply chain shortages emphasize need for Smart solutions
Energy and supply chain shortages emphasize need for Smart solutions
Global electrification is vital if the world is to decarbonize and meet the Paris Agreement.
30-11-2021 | Product webinar
Integrating ESG and carbon metrics alongside active engagements
Integrating ESG and carbon metrics alongside active engagements
The 2021 United Nations’ COP26, took place early November.
29-11-2021 | Insight
Green is the new color, also for emerging markets
Green is the new color, also for emerging markets
Emerging markets have been significantly increasing their investments in green energy generation.
25-11-2021 | Insight