ROOT
Key stewardship trends for investors in 2022 revealed
Biodiversity and net zero are expected to be among the key themes this year.
Key stewardship trends for investors in 2022 revealed
Global active equity specialist Martin Currie has outlined key stewardship themes for investors this year, covering ESG, sustainability and responsible investing.
The firm identified biodiversity as one of its main focuses in 2022, with a number of significant developments said to take place.
“Biodiversity loss represents a real and tangible risk for business, and it is increasingly important that investors consider the potential impact that biodiversity loss might have on investee companies,” said Martin Currie head of stewardship and ESG David Sheasby.
Mr Sheasby predicted that biodiversity would become increasingly prominent as an issue intertwined with climate change.
“Encouragingly, we are seeing biodiversity initiatives emerging that mirror the extensive work that has already been done on climate change,” he said.
“We are moving to a consistent and comprehensive framework for organisations to report on nature-related risks within mainstream corporate reporting.”
As for climate change, Martin Currie expects it will continue to gain prominence along with the transition to net zero.
“COP26 increased the sense of urgency around addressing climate change and there is now real momentum in investor-led initiatives, such as the Net Zero Asset Managers Initiative, of which Martin Currie is a part,” Mr Sheasby said.
“There is plenty of work for investors to do to assess the extent to which companies are aligned to net zero. Engagement will increase as a key tool.”
Martin Currie also flagged progress in the development of sustainable reporting standards following the establishment of the International Sustainability Standards Board (ISSB) last year.
According to the firm, the strong flows into ESG and sustainable funds seen last year are set to gather pace in 2022, with support from regulatory changes in Europe, the United Kingdom and the United States.
Additionally, Martin Currie expects the “S” in ESG to receive greater attention this year as social awareness increases, including additional focus on diversity, equity and inclusion.
“These are key social issues that are taking on greater importance for businesses and investors,” said Mr Sheasby.
“Active asset owners will increasingly identify potential challenges and work with companies to address any shortcomings. There is a growing belief in the investment management industry that outcomes should go beyond alpha and improve lives.”
The firm also pointed to proxy voting with purpose as a key trend in 2022.
“Investors will scrutinise company climate transition plans with greater attention and will vote ‘consequentially’ on transition plans or for the director responsible for these plans,” Mr Sheasby said.
“Shareholders will increasingly use their voting rights to push for action across the whole ESG agenda.”
RELATED ARTICLES
Invest
Good Return launches $10 million fund to support women entrepreneurs across Asia-Pacific
Social purpose organisation Good Return has launched a second Impact Investment Fund targeting a $10 million capital raise to support women-led businesses in developing Asia-Pacific economies. Read more
Invest
Australian investors flock to US stocks and crypto after Trump victory
Trading volumes in US equities surged 20 per cent on Australia's second-largest share trading platform following Donald Trump's election victory last month, as local investors sought to capitalise on ...Read more
Invest
Investment firm raises $9bn for global special situations fund
Bain Capital secured $9 billion for its latest Global Special Situations Fund, positioning the firm as one of the world's largest special situations investors. Read more
Invest
Morrison Securities unveils plug-and-play global trading access to 15 countries
Equities clearing firm Morrison Securities has partnered with trading technology provider ViewTrade to introduce one of Australia's first plug-and-play global trading solutions, enabling streamlined ...Read more
Invest
Institutional investors react positively to policy stimulus in September
State Street Global Markets has reported a rebound in institutional investor risk appetite in September, driven by supportive policy announcements from central banks. Read more
Invest
AMP partners with Striver for Brimstone event to attract new financial advisers
AMP has announced a partnership with advice community and careers technology platform Striver for the annual Brimstone event series, scheduled to take place in Sydney next week. Read more
Invest
North expands managed portfolio options with new customisation features
North, a leading Australian wrap investment platform, has announced an expansion of its customisation options for managed portfolios, aiming to provide advisers with greater flexibility for their ...Read more
Invest
State Street partners with Taurus to expand digital asset capabilities
State Street Corporation has announced a strategic agreement with digital asset infrastructure provider Taurus SA to enhance its digital asset offerings for institutional clients. Read more
Invest
Good Return launches $10 million fund to support women entrepreneurs across Asia-Pacific
Social purpose organisation Good Return has launched a second Impact Investment Fund targeting a $10 million capital raise to support women-led businesses in developing Asia-Pacific economies. Read more
Invest
Australian investors flock to US stocks and crypto after Trump victory
Trading volumes in US equities surged 20 per cent on Australia's second-largest share trading platform following Donald Trump's election victory last month, as local investors sought to capitalise on ...Read more
Invest
Investment firm raises $9bn for global special situations fund
Bain Capital secured $9 billion for its latest Global Special Situations Fund, positioning the firm as one of the world's largest special situations investors. Read more
Invest
Morrison Securities unveils plug-and-play global trading access to 15 countries
Equities clearing firm Morrison Securities has partnered with trading technology provider ViewTrade to introduce one of Australia's first plug-and-play global trading solutions, enabling streamlined ...Read more
Invest
Institutional investors react positively to policy stimulus in September
State Street Global Markets has reported a rebound in institutional investor risk appetite in September, driven by supportive policy announcements from central banks. Read more
Invest
AMP partners with Striver for Brimstone event to attract new financial advisers
AMP has announced a partnership with advice community and careers technology platform Striver for the annual Brimstone event series, scheduled to take place in Sydney next week. Read more
Invest
North expands managed portfolio options with new customisation features
North, a leading Australian wrap investment platform, has announced an expansion of its customisation options for managed portfolios, aiming to provide advisers with greater flexibility for their ...Read more
Invest
State Street partners with Taurus to expand digital asset capabilities
State Street Corporation has announced a strategic agreement with digital asset infrastructure provider Taurus SA to enhance its digital asset offerings for institutional clients. Read more
