Fundamentals of engagement and stewardship

ESG engagement has moved up the investment agenda in recent years. Understanding how ESG engagement works in practice and comparing the different engagement approaches and styles is very important. Also, understanding the principles of stewardship codes is fundamental to effective ESG dialogue and engagement.

The course looks at approaches towards engagement and how engagement may create value for corporations and investors, both by enhancing returns and by controlling risk. We assess the advantages and disadvantages of individual and collective engagement, the enablers and barriers to successful engagement, and the ways in which a company can assess its engagement success.

COURSE AGENDA

Activism and engagement in the context of ESG investing

• ESG Activism is growing in importance
• The principles of stewardship codes
• The role of proxy advisors
• How does engagement work and add value

How engagement creates value for companies and investors

• Features and practicalities of effective engagement
• Preservation and enhancement of value
• The importance of materiality
• The role of asset owners in stewardship activities

The features and purpose of an engagement plan

• Key issue engagement, stakeholder engagement, long-term value engagement
• Working with companies on specific ESG issues
• Issues-based Vs company-focused
• Engagement escalation measures – raising the stakes in an engagement

Assessing the performance of engagement activity, including benchmarking

• Shareholder resolutions, collective engagement and disinvestment
• Collective engagement frameworks
• Examining proxy resolutions
• Encouraging companies to change their behaviours