Engagement

    ESG & Governance

    Dialogue between investors and company management or boards to improve ESG practices, disclosure or performance.

    Engagement ranges from letters and meetings to joint investor campaigns, such as Climate Action 100+. It works best with a specific request, a timeline and an escalation plan, such as voting against directors if nothing changes. Research has found that successful engagements are followed by positive abnormal returns. Good managers report the outcomes of engagement, not just the number of meetings.

    Related terms