Effective engagement is one of the most important ways for financial institutions to have impact on the real economy. Engagement can directly and indirectly improve the environmental and financial performance of companies and assets.
Yet there are pervasive collective action problems in effectively executing concerted and coordinated engagement strategies. Further, financial institution influence on companies and their environmental footprints varies enormously by asset class, sector, and geography, as well as by the size and reputation of financial institutions.
We do not think current engagement strategies are particularly effective at achieving the scale and pace of change required. Our Future of Engagement theme aims to secure a step change in the efficiency and efficacy of financial institution engagement to secure lasting sustainability outcomes.
A range of theoretical, technological, regulatory, and practical changes could be made to shape the future of engagement. The project is systematically exploring these to identify specific ways to achieve greater success much more quickly.
Research topics include:
- Engagement in asset classes beyond listed equities
- Measuring engagement performance
- Fintech and what it could mean for engagement
- Place-based engagement
To find out more about our work on the future of engagement, contact Dr Elizabeth Harnett.
- Investors debate engagement priorities, Top1000Funds.com, June 2019.