Morningstar Sustainalytics’ Post

This quick summary of the results of recent surveys of North American CEOs provides insight into management views of ESG issues and trends. https://lnkd.in/gkqy5Gp9

Quick read with some strong insights.

Your shareholder resolution has received majority support—what’s next?   Our research on sustainability-related shareholder resolutions found that, where resolutions receive majority support, it takes time for companies to act and there may be barriers to overcome.   79% of resolutions from the 2022 proxy season were implemented, compared to 52% for the 2023 proxy season, with more limited progress for the 2024 season. 📉    This highlights the importance of ongoing dialogue between investors and investee companies.    In a recent interview, René van Merrienboer, Director of Financial System Strategy & Analysis at the PRI explained, “Our message to investors is that your job doesn’t stop when you file the resolution and it’s put to a vote, but that there is a need for continued engagement on the resolution after filing to ensure that corporate boards implement it.” 📖 Read the full interview with ESG Investor: https://lnkd.in/dvFjfTZs

🔍 A Shift in ESG Strategy? Here's My Take 🔎 Recent findings by The Wall Street Journal and the Committee to Unleash Prosperity reveal a fascinating turn in ESG proxy voting trends. In 2023, support for ESG proposals saw a notable drop - 25% less than the previous year. This decline is especially pronounced among the top 25 most active fund families, retreating by 30%. 🔥  What's behind this shift? A growing skepticism towards the recommendations of proxy advisers ISS and Glass Lewis plays a part. These firms, dominating the market with their guidance on shareholder votes, have historically backed ESG heavily. Yet, with grades like a D for Glass, Lewis & Co. and an F for ISS, their influence is being questioned. ✅ Jamie Dimon's call for more independent research by fund managers before voting reflects a broader sentiment that's emerging. It seems there's a renewed focus on fulfilling fiduciary duties to investors, prioritizing returns over advocacy. ✅ This pivot raises important questions about the future of ESG investing and the role of proxy advisers in shaping investment strategies. 🔥 What do you think? Is this a temporary setback for ESG, or are we witnessing a fundamental change in how investment priorities are set? *********Subscribe here to get all my 🔥 takes on the Board and C-suite effectiveness. 👉🏿 https://bit.ly/3VCkqyV ******** #ESG #Investing #FinanceTrends #ProxyVoting JUST Capital Roosevelt Giles #CEO #ESG #KSgems #CIO #CTO #CISO #Boardroom #Boardgovernance https://lnkd.in/e8ahrdRS

I'm always excited to receive a hard copy of The Investor Relations Society Informed magazine in my mail! But this issue is extra exciting because it has an article about The Investor Forum CIC and our work in stewardship and governance. In it it highlights how we are Shaping Tomorrows' Dialogues through our work with investors and issuers. Building on this and our partnership with the The Investor Relations Society our first 'Investor Showcase' will take place on 16th January - 12.30-2pm. Join us to hear our investor members Aviva Investors, Legal & General Investment Management (LGIM), M&G Investments and Schroders share insights on their structure, their investment approaches and their key stewardship priorities. Each institution will host a 20 minute session to showcase their priorities, including ESG, voting policies, diversity goals, and net zero targets. Companies can sign up for the most relevant sessions and access recordings for future reference. Register here: https://lnkd.in/e3HQ8z5q If you’re interested in learning more about my current focus, you can read about our The Investor & Issuer Forum initiative, where we serve as the secretariat. Please feel free to reach out if you’d like more information or have any questions #investorandissuer #transparency #dialogue #shapingdialogues #ukequitymarkets

The “Big Three” institutional investors, BlackRock, State Street Global Advisors and Vanguard, recently released 2024 proxy voting policies and related guidance applicable to U.S. companies. Companies are well-advised to review these policies and guidance in planning for engagement with the Big Three throughout the year and as the proxy season wraps up, and in considering environmental, social and governance disclosures going forward. In this Guide, our Public Company Advisory Group: • Provides ESG-focused practical guidance for public companies to consider in light of these policies and guidance.  • Identifies changes to the proxy voting policies and guidance of the Big Three on ESG topics for 2024. • Summarizes the expectations of the Big Three as to company practices and disclosures around selected ESG topics, and highlights where failing to meet expectations may result in votes against directors. View The Big Three & ESG Guide: https://lnkd.in/eDKeUcyV #ESG #Sustainability

Managing Director and Head of Europe, Charlie Chipchase, spoke to Jon Whiteaker of The Drawdown on how the gap between U.S. and European fund operations is getting smaller despite the recent SEC ruling on the Private Fund Advisers rule.    Specifically, Charlie explains how the ESG acronym is becoming de-emphasized, and PE firms are focusing on sustainability and responsible investing. "The increasing burden and complexity of ESG reporting, and the focus on cost management by PE firms has prompted many GPs to outsource the more routine monitoring and reporting tasks," says Charlie.    Petra has a deep bench of ESG and sustainability experts with experience in the U.S. and European regulatory landscape. If you are struggling to identify a cost-effective expert solution for your ESG monitoring and reporting tasks, please contact Charlie at charlie@petrafundsgroup.com to learn how Petra can help.   Read the article here: https://lnkd.in/d9BCFaCD.   #ESG #Sustainability #ResonsibleInvesting #FundAdministration

As custodians of our clients’ assets, we commit to active stewardship and ESG integration, driving both financial and non-financial value. Here's how: 📌 Share voting: We vote on all shares and provide quarterly reports with reasoning. 📌 Transparency: Voting and engagement activities are reviewed and inform our investment decisions. 📌 Corporate engagement: We expect asset managers to engage on ESG issues with investee companies. 📌 Public policy: We work with regulatory bodies and shareholder organisations to advocate for our clients. Learn more: https://bit.ly/4d6CfzC

ESG investing is a topic that polarises opinion among financial advisers like no other. The debate has ebbed and flowed, and currently there appear to be more sceptics than enthusiasts. Most of us, I suspect, are somewhere in between. Advisers often say that clients aren’t interested in ESG. But is that because those adviser aren’t interested themselves? Those advisers, after all, are the least likely to attract clients who do have an interest in it, or at least might do, if it were properly explained to them. In many cases, I wonder whether advisers have that impression because they tend not to speak to clients and prospects about it so don’t really know what they think. We’ve just produced a three-part series on this subject for Global Systematic Investors LLP (GSI). In it, Max Tennant, whose firm Ifamax Wealth Management embraced ESG earlier than most, describes the journey he and his firm have been on. Here’s the first video 👉 https://shorturl.at/uQvjE #ESGinvesting #ESG #Investing #FinancialAdvice #FinancialPlanning

ESG investing is a topic that polarises opinion among financial advisers like no other. The debate has ebbed and flowed, and currently there appear to be more sceptics than enthusiasts. Most of us, I suspect, are somewhere in between. Advisers often say that clients aren’t interested in ESG. But is that because those adviser aren’t interested themselves? Those advisers, after all, are the least likely to attract clients who do have an interest in it, or at least might do, if it were properly explained to them. In many cases, I wonder whether advisers have that impression because they tend not to speak to clients and prospects about it so don’t really know what they think. We’ve just produced a three-part series on this subject for Global Systematic Investors LLP (GSI). In it, Max Tennant, whose firm Ifamax Wealth Management embraced ESG earlier than most, describes the journey he and his firm have been on. Here’s the first video 👉 https://shorturl.at/uQvjE #ESGinvesting #ESG #Investing #FinancialAdvice #FinancialPlanning