Talking PointApr 26 2023

Can active ownership get us to net zero?

  • Explain how shareholders influence companies
  • Understand investor attitudes toward active ownership
  • Understand the adviser's role in monitoring active ownership
  • Explain how shareholders influence companies
  • Understand investor attitudes toward active ownership
  • Understand the adviser's role in monitoring active ownership
Supported by
Schroders
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CPD
Approx.30min
pfs-logo
cisi-logo
CPD
Approx.30min
Supported by
Schroders
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Supported by
Schroders
pfs-logo
cisi-logo
CPD
Approx.30min
Can active ownership get us to net zero?
As demand for ESG-focused investment strategies grows, the role of advisers is also set to evolve
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Active ownership is typically used to describe the way investors, investment managers and fund managers engage with the companies they invest in to encourage more ‘responsible’ behaviour.

The idea is that holding the companies to account will lead to a change in strategies and transformation of business models, which depending on the objective of the investors could, for example, contribute to limiting the damage of climate change.

With climate change deemed an investment risk, the desire to tackle climate change in portfolios has become even more of a priority for the financial services industry.

By the time you have read this feature you should be able to understand how active ownership works, how investors influence the investee companies and the role of the adviser.

It is worth 30 minutes of CPD.

CPD
Approx.30min
Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.
  1. Which of the following is the odd one out for ways in which shareholders can influence companies, according to Michiel van Esch?
  2. According to Esch, how can investors contribute to reducing real-world emissions?
  3. According to Ray Dhirani, what can advisers do to ensure that portfolios continue to meet any client requirements on active ownership?
  4. According to Daisy Streatfeild, an activist approach is equally as effective as constructive collaboration in driving towards a more long-term net-zero target. True or false?
  5. According to Nina Roth, what are the ways advisers can make sure that major ESG risks are being addressed by the portfolio’s manager?
  6. Jade Coysh says that an important aspect of engagement is making sure that measurable targets are in place, with a timeline for meeting them. True or false?
  7. To bank your CPD you must sign in or Register.