All Stewardship articles – Page 13
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Academic research
Introduction to how ESG engagement creates value for investors and companies
A growing number of investors are undertaking corporate engagement and exercising their rights as shareholders to influence corporate behaviour.
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Academic researchHow ESG engagement creates value for investors and companies
There is growing evidence that engagement by investors with companies on ESG issues can create shareholder value.
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Engagement guideHow investors can promote responsible cobalt sourcing practices
Lithium-ion batteries power products at the cutting edge of technology, from smartphones to laptops and electric cars.
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Engagement guideRisks in the upstream cobalt supply chain
ASM: Carried out informally by individuals or communities using manual labour and hand tools. 20% of the cobalt sourced from the DRC is mined this way. Large-scale mining (LSM): Industrial mining that represents 80% of the cobalt sourced from the DRC. LSM and ASM supplies ...
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Engagement guide
How to respond to and remedy human rights violations in the cobalt supply chain
Under relevant international standards (e.g. UN Guiding Principles on Human Rights), companies have the responsibility to mitigate or remediate any negative impact caused – directly or indirectly by their activities. Ceasing relationships with problematic suppliers or ceasing to source from the DRC or from ASM does not constitute a ...
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Engagement guide
Tackling human rights risk in the cobalt supply chain through industry initiatives
Joining and actively participating in industry initiatives allows companies to have a dialogue with peers, benefit from knowledge sharing platforms and combine efforts to tackle common challenges.
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Engagement guide
Human rights risk assessment and due diligence in the cobalt supply chain
The OECD Guidance for Multinational Companies sets out different due diligence requirements that stem from the different responsibilities companies have according to their location in the supply chain.
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Engagement guideHow do companies address human rights risk in the cobalt supply chain?
Consumer electronics Apple has mapped its supply chain down to the mines and formed a coalition of industry players that led to the creation of a risk readiness assessment tool. One hundred percent of smelters in the chain receive third-party audits and Apple works ...
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PRI Web PageEngaging with companies on cyber security
Cyber attacks can compromise customer information, operational systems and sensitive business data such as financial data, supplier details and intellectual property.
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Engagement guide
ESG engagement for fixed income investors: managing risks, enhancing returns
Issuer engagement on ESG factors is becoming increasingly commonplace. Investors are starting to formalise their engagement as an integral part of their approaches to responsible investment.
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Engagement guide
Timing fixed income engagement
Successful bondholder engagement with issuers is largely dependent on whether the deal is public or private, and whether the investor engages pre- or post-issuance.
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Engagement guide
Embedding engagement in the fixed income investment process
Engagement by fixed income investors should not be seen as a standalone activity but as an integral part of a responsible investment approach . as both a source of information for investment research, and a way to directly influence the issuer’s management of ESG risks and opportunities. Thus, the research ...
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Engagement guide
Factors determining the effectiveness of engagement in fixed income
Fixed income investors’ ability to influence issuers’ senior management depends on a number of factors, many of which will appear obvious but are nonetheless important to bear in mind when developing an engagement strategy.
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Engagement guide
Overcoming common hurdles in fixed income engagement
Despite the motivations for engagement laid out earlier in this report, there remains significant inertia among fixed income investors to engage.
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Engagement guide
Collaborative engagement in fixed income investing
Principle 5 of the six Principles encourages collaboration by investors to enhance the effectiveness of their responsible investment approach.
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News and press
The PRI examines how ESG engagement can benefit fixed income investors
As part of the PRI’s commitment to provide further guidance on responsible investment practices in specific asset classes, it has today launched ESG Engagement for Fixed Income Investors: Managing Risks, Enhancing Returns, which shows that bondholders are increasingly engaging on environmental, social and governance (ESG) factors in order to better ...
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Engagement guide
Defining objectives and measuring the effectiveness of engagement in fixed income
Once the list of target companies has been defined, investors need to set objectives and track the outcomes of their engagement practices to ensure their effectiveness.
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Engagement guide
Tips for effective bondholder engagement
In this section, we present a summary of practical tips for effective bondholder engagement.
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Engagement guideEngagement trends among fixed income investors
This section considers ESG engagement trends among fixed income investors before giving guidance on the practical aspects of bondholder engagement.
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Engagement guide
Prioritising fixed income engagement activities
Investors with exposure to hundreds or thousands of different issuers may only be able to meaningfully and proactively engage a small proportion of those issuers.
