Facilitating Investor Engagement on ESG Issues: The PRI Initiative in Action
10 Pages Posted: 12 Jun 2014
Date Written: May 23, 2014
This article summarizes the key practical insights and results from a study published by the authors in Business and Society. It demonstrates that collaborative engagement with companies on environmental, social, and corporate governance (ESG) issues provides institutional investors with material benefits including opportunities to share resources, time, and knowledge as well as to increase the weight of investors’ demands in the eyes of corporate management. The article also notes that these collaborations come with typical barriers to collective action, such as properly funding such initiatives. The primary focus of the article is to explore the multiple roles that an organization such as PRI can play to overcome these challenges and support the collaborative engagement process. The authors begin by setting out a conceptual framework to address this question, then describe the findings of three actual case studies in which PRI played such a role.
Keywords: Collaborative Engagement, Environmental/Social/Governance (ESG) Issues, Institutional
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