The shift towards renewable energy is building, recording its highest growth rate of any energy source recorded in 2017.
While the public markets comprise a smaller portion of the clean energy investment universe compared to asset finance and unlisted assets (including infrastructure, private equity and venture capital), activity in the acquisitions market has steadily grown over recent decades, reflecting the larger
Transparency is a key component of active ownership and it forms part of many stewardship codes and principles (i.e. Principle 6, the ICGN Global Stewardship Principles, the OECD Responsible Business Conduct for Institutional Investor and several national stewardship codes).
When investors decide to partially or fully outsource their active ownership activities to investment managers or specialised service providers, defining criteria to select, appoint and monitor third parties is crucial.
The first step to identify targets for engagement is setting up regular monitoring of investee companies on ESG issues which represent value at risk or potential opportunities for long-term financial performance and impact on the real economy.