Shareholders seek to change the environmental, social and governance (ESG) practices and policies of the companies in which they invest by establishing a long-term relationship with them, which we call shareholder engagement.
Shareholder engagement is initiated by shareholders with a formal expression of concern in a written letter; usually continues with the tabling of a formal resolution or proposal to be voted on by all investors at the company’s annual meetings; advances through private dialogue between shareholders and company executives; and leads to concrete change through the judicious articulation of conflict and collaboration at different stages of the process.
